TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 1. TEXAS DEPARTMENT OF HUMAN SERVICES

Chapter 15. MEDICAID ELIGIBILITY

Subchapter F. BUDGETS AND PAYMENT PLANS

40 TAC §15.503

The Texas Department of Human Services (DHS) proposes to amend §15.503, concerning protection of spousal income and resources, in its Medicaid Eligibility chapter. The purpose of the amendment is to allow DHS to continue to process a Medicaid application in spousal cases when there is a possibility of abuse or neglect by the community spouse, rather than to deny the application. DHS will, in those cases, consider the client as an individual for eligibility and applied income purposes.

Eric M. Bost, commissioner, has determined that for the first five- year period the proposed section will be in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the section.

Mr. Bost also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of adoption of the proposed rule will be the continued processing of Medicaid applications for affected clients, rather than denying them for failure to provide information. There will be no effect on small or micro businesses as a result of enforcing or administering the section, because the section applies only to the client's financial eligibility for Medicaid benefits, not to the operation of businesses. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Questions about the content of this proposal may be directed to Judy Coker at (512) 438-3227 in DHS's Long Term Care Section. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-101, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

The amendment is proposed under the Human Resources Code, Title 2, Chapters 22 and 32, which authorizes the department to administer public and medical assistance programs and under Texas Government Code §531.021, which provides the Health and Human Services Commission with the authority to administer federal medical assistance funds.

The amendment implements the Human Resources Code, §§22.001- 22.030 and §§32.001-32.042.

§15.503.Protection of Spousal Income and Resources.

(a)-(e)

(No change.)

(f)

If a community spouse refuses to cooperate in furnishing information to establish a spousal protected resource amount (PRA) at the beginning of a continuous period of institutionalization, the department does not complete the assessment and does not take further action. No benefits are authorized, so no penalty is imposed. If an assessment is completed in conjunction with an eligibility determination, and a community spouse refuses to furnish information, the department determines the living arrangement before institutionalization.

(1)

If the couple was living in the same household, the department denies the application based on the couple's failure to furnish information. Living in the same household includes temporary separations.

(2)

If the couple is not living in the same household, the department determines the purpose of separation, the length of separation, and resources or income commingled or managed jointly by one member of the couple or a third party.

(3)

If the community spouse refuses to cooperate in providing information and circumstances indicate possible abuse or neglect by the community spouse, the department considers the client as an individual for eligibility and applied income purposes. This is true even if the spouses were living in the same household prior to the client's nursing facility entry or application for waiver services.

(g)-(k)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 11, 2001.

TRD-200102643

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 438-3108


Chapter 18. NURSING FACILITY ADMINISTRATORS

40 TAC §§18.1, 18.8, 18.9

The Texas Department of Human Services (DHS) proposes to amend §18.1, concerning introduction, §18.8, concerning provisional licensure, and §18.9, concerning licensure renewal and inactive status, in its Nursing Facility Administrators chapter. The purpose of the amendments is to further clarify the provisions and requirements of Texas Health and Safety Code, Chapter 242, Subchapter I; to give DHS the discretion to determine if a licensed administrator from out of state has sufficient education, training and experience, or a national certification that warrants issuance of a provisional license; and to further prevent administrators with proposed revocations against their licenses from escaping sanctions by allowing their licenses to expire and later retesting and complying with current licensure requirements in order to obtain a new license.

Eric M. Bost, commissioner, has determined that for the first five- year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Mr. Bost also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of adoption of the proposed rule will be to ensure that nursing facility administrators licensed in the State of Texas have the necessary licensure qualifications to provide greater protection of the health and safety of residents and consumers of nursing facilities DHS regulates. There will be no adverse economic effect on small or micro businesses, because recognizing the experience, training and qualifications of out-of-state administrators who do not meet the educational requirements may increase the availability of licensed nursing facility administrators who want to practice in Texas. There is no anticipated economic cost to persons who are required to comply with the proposed sections.

Questions about the content of this proposal may be directed to Lynette Sanders at (512) 231-5800 in DHS's Credentialing Department. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-093, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Texas Government Code, the department has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, the department is not required to complete a takings impact assessment regarding these rules.

The amendment is proposed under the Health and Safety Code, Chapter 242, which authorizes the department to license and regulate nursing facilities.

The amendment implements the Health and Safety Code, §242.001- 242.268.

§18.1.Introduction.

(a)

(No change.)

(b)

Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)-(15)

(No change.)

(16)

Good standing -- The status of a nursing facility administrator who is in compliance with the statutory and licensure requirements for the practice of nursing facility administration in the state of Texas and/or licensing authority of another state. In addition, the terms of any adverse disciplinary action or settlement agreement imposed by DHS must be satisfactorily completed.

(17)

[ (16) ] Internship -- The training period for an Administrator-In-Training gaining supervised practical experience.

(18)

[ (17) ] License -- A nursing facility administrator license or a provisional nursing facility administrator license.

(19)

[ (18) ] Licensee -- A person who is licensed under the Texas Health and Safety Code, Chapter 242, Subchapter I.

(20)

[ (19) ] Misappropriation of resident property -- The taking, secretion, misapplication, deprivation, transfer, or attempted transfer to any person not entitled to receive any property, real or personal, or anything of value belonging to or under the legal control of a resident without the effective consent of the resident or other appropriate legal authority, or taking of any action contrary to any duty imposed by federal or state law prescribing conduct relating to the custody or disposition of property of a resident.

(21)

[ (20) ] NAB -- National Association of Boards of Examiners for Nursing Home Administrators, Inc.

(22)

[ (21) ] Neglect -- A deprivation of life's necessities of food, water, or shelter, or a failure of an individual to provide services, treatment, or care to a resident which causes or could cause mental or physical injury, or harm or death to the resident.

(23)

[ (22) ] Nursing facility -- An institution or facility that is licensed as a nursing facility by the department under the Texas Health and Safety Code, Chapter 242.

(24)

[ (23) ] Nursing facility administrator or administrator -- A person who engages in the practice of nursing facility administration without regard to whether the person has an ownership interest in the facility or whether the functions and duties are shared with any other person.

(25)

[ (24) ] Party -- Each person, governmental agency, or officer or employee of a governmental agency named by the Administrative Law Judge as having a justifiable interest in the matter being considered, or any person, governmental agency, or officer or employee of a governmental agency meeting the requirements of a party prescribed by applicable law.

(26)

[ (25) ] Person -- An individual, corporation, partnership, or other legal entity.

(27)

[ (26) ] Practice of nursing facility administration -- The performance of the acts of administering, managing, supervising, or being in general administrative charge of a nursing facility.

(28)

[ (27) ] Practicum -- A course of study designed for the preparation of nursing facility administrators that involves supervision by the college of the practical application of previously studied theory in a nursing facility setting.

(29)

[ (28) ] Preceptor -- A licensed nursing facility administrator who meets the criteria in §18.6 of this title (relating to Administrators-in-Training).

(30)

[ (29) ] Referral -- A finding of substandard quality of care in a nursing facility that requires Long Term Care-Regulatory to report an administrator to its licensing authority as mandated by the Code of Federal Regulations.

(31)

[ (30) ] Substandard Quality of Care -- Any deficiency in Resident Behavior and Facility Practices, Quality of Life, or Quality of Care that constitutes: immediate jeopardy to resident health or safety; or, a pattern of widespread actual harm that is not immediate jeopardy; or, a widespread potential for more than minimal harm that is not immediate jeopardy, with no actual harm.

(32)

[ (31) ] Standard survey -- A periodic, resident-centered inspection that gathers information about the quality of service furnished in a facility to determine compliance with the requirements of participation.

(33)

[ (32) ] Texas Open Meetings Act -- The Government Code, Chapter 551, Subchapters A-G.

(34)

[ (33) ] Texas Open Records Act -- The Government Code, Chapter 552, Subchapters A-G.

(35)

[ (34) ] Year -- A calendar year.

§18.8.Provisional Licensure.

(a)

The Texas Department of Human Services (DHS) grants [ shall grant ] a provisional license to an individual who provides evidence of the following:

(1)

current licensure or registration as a nursing facility administrator by another state or other jurisdiction that is in good standing; or current certification of qualification by any national organization; and

(2)

a bachelor's degree in any subject from an accredited college approved by an accrediting association recognized by the Texas Higher Education Coordinating Board; or evidence satisfactory to DHS of having completed sufficient education, training and experience in nursing facility administration; and

(3)-(5)

(No change.)

(b)

DHS may recognize current licensure, registration or certificate issued by other state or national organizations if the system and standards of qualification and examination for a nursing home administrator license or certification were substantially equivalent to those required in this state at the time such other license or certificate was issued by such other state or national organization. [ DHS may, at its discretion, waive the requirement in subsection (a)(5) of this section, if compliance places a hardship on an individual. ]

(c)-(d)

(No change.)

§18.9.Licensure Renewal and Inactive Status.

(a)-(u)

(No change.)

(v)

A licensee who surrenders a license , or allows a license to expire, in lieu of a formal disciplinary action that proposes the imposition of a license revocation shall return the license certificate to DHS and shall be permanently barred from obtaining a license in Texas.

(w)-(x)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 11, 2001.

TRD-200102644

Paul Leche

General Counsel, Legal Services

Texas Department of Human Services

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 438-3108


Part 2. TEXAS REHABILITATION COMMISSION

Chapter 106. CONTRACT ADMINISTRATION

The Texas Rehabilitation Commission (TRC) proposes the repeal to Chapter 106, §§106.1-106.44, 106.50, and 106.55-106.60 and new §§106.1-106.3, 106.21, 106.31, 106.35, 106.36, 106.105, 106.301, 106.351, 106.353, 106.355, 106.357, 106.451, 106.453-106.455, 106.457, 106.459, 106.461, 106.463, 106.465, 106.467, 106.469, 106.471, 106.473, 106.475, 106.477, 106.479, 106.481, 106.483, 106.563, 106.565, 106.567, 106.569, 106.570, 106.571, 106.573, 106.575, 106.577, 106.579, and 106.581, concerning purchase of goods and services by TRC. The change is being proposed to bring TRC's purchasing rules into conformance with contracting policies of the Health and Human Services Commission.

Charles E. Harrison, Jr., Deputy Commissioner for Financial Services, has determined that for the first five-year period the sections are in effect, there will be no material fiscal implications for state or local government.

Mr. Harrison also has determined that for each year of the first five years the sections are in effect the public benefit anticipated as a result of enforcing the sections will be the agency's compliance with Chapter 111, Human Resources Code. There will be no material effect on small businesses. There is no material anticipated economic cost to persons who are required to comply with the sections as proposed.

Comments on the proposal may be submitted to Roger Darley, Assistant General Counsel, Texas Rehabilitation Commission, 4900 North Lamar Boulevard, Suite 7300, Austin, Texas 78751.

Subchapter A. ACQUISITION OF CLIENT GOODS AND SERVICES

40 TAC §§106.1 - 106.36

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Rehabilitation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.1.Purpose.

§106.2.Specific State Contracting Law.

§106.3.Criteria for Determining When a Contract Is Required.

§106.4.Definitions.

§106.5.Principles of Contract Administration.

§106.6.Ethical Standards.

§106.7.Non-discrimination.

§106.8.Small Businesses and Businesses Owned by Minorities, Women, and Persons with Disabilities.

§106.9.Documented Rate-Setting Methodologies.

§106.10.General Requirements for Contractors.

§106.11.Purchases for Individual Clients.

§106.12.Solicitations for Express Contracts.

§106.13.Extent of Competition for Acquisition by Express Contracts.

§106.14.Cancellation or Suspension of Solicitation.

§106.15.Timeliness of Response.

§106.16.Modification or Withdrawals of Bids, Offers, and Proposals before Solicitation Closing Date.

§106.17.Confidentiality and Release of Information.

§106.18.Evaluation of Bids, Offers, and Proposals.

§106.19.Cost or Price Analysis.

§106.20.Express Contract Specifications.

§106.21.Duration of an Express Contract.

§106.22.Requirements for Express Contracts.

§106.23.Access to Contractor Facilities and Records.

§106.24.Contract Monitoring Principles.

§106.25.Risk Assessment.

§106.26.Monitoring Performance.

§106.27.Monitoring Financial Compliance.

§106.28.Corrective Action Plan.

§106.29.Independent Audits.

§106.30.Recoupment of Improper Payments.

§106.31.Settling Disagreements.

§106.32.Adverse Actions.

§106.33.Contract Termination.

§106.34.Protests.

§106.35.Appeals.

§106.36.Contract Review Committee.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102677

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter B. ACQUISITION OF GOODS AND SERVICES FOR ADJUDICATION OF CLAIMS BY DISABILITY DETERMINATION SERVICES

40 TAC §106.37

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Rehabilitation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.37.Adjudications by Disability Determination Services.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102678

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter C. ACQUISITION OF ADMINISTRATIVE GOODS AND SERVICES

40 TAC §§106.38 - 106.40

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Rehabilitation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.38.Procurement Authority.

§106.39.Procurement Policies and Regulations.

§106.40.Compliance with Other State Laws.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102679

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter D. DEBARMENT

40 TAC §§106.41 - 106.44

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Rehabilitation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.41.Debarment and Suspension of Current and Potential Contractor's Rights.

§106.42.Causes for and Conditions of Debarment.

§106.43.Causes for and Conditions of Suspension.

§106.44.Proof Required for Debarment or Suspension.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102680

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter E. RATES FOR MEDICAL SERVICES

40 TAC §106.50

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Rehabilitation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.50.Schedule of Rates for Medical Services.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102681

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter F. RESOLUTION OF CERTAIN CONTRACT CLAIMS AGAINST THE STATE-NEGOTIATION OF CLAIM

40 TAC §§106.55 - 106.60

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Rehabilitation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeals are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.55.Claim for Breach of Contract; Notice.

§106.56.Negotiation.

§106.57.Partial Resolution of Claim.

§106.58.Payment of Claim from Appropriated Funds.

§106.59.Incomplete Resolution.

§106.60.Mediation.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102682

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Chapter 106. PURCHASE OF GOODS AND SERVICES BY TEXAS REHABILITATION COMMISSION

Subchapter A. GENERAL

40 TAC §§106.1 - 106.3, 106.21, 106.31, 106.35, 106.36

The new sections are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.1.Purpose.

This chapter supplements the general procedures and criteria prescribed by Health and Human Services Commission in Title 1, Texas Administrative Code, Chapter 391, to govern the purchase of goods and services by purchasing entities that are efficient, economical and achieve health and human services procurement objectives.

§106.2.Scope.

(a)

This chapter applies to the purchase of goods and services by the Texas Rehabilitation Commission, whether for administrative or client use or benefit. The provisions of this chapter govern to the extent of any conflict with a procedure or requirement prescribed by another state agency other than:

(1)

a procedure or requirement relating to historically underutilized businesses; and

(2)

a procedure or requirement relating to the purchase of goods or services from persons with disabilities.

(b)

This chapter does not apply to the following transactions:

(1)

The lease, purchase, or lease-purchase of real property;

(2)

The award of grants, except as specifically provided herein; or

(3)

Interstate or international agreements executed in accordance with applicable law.

§106.3.Authority.

The Texas Rehabilitation Commission receives delegated purchasing authority for procuring administrative goods and services from Government Code, §2154.144. The legal authority for the Texas Rehabilitation Commission to enter into contracts is Title 7, §111.052, Human Resources Code. TRC will also comply with specific contracting procedures found in the Interagency Cooperation Act, Government Code §§771.001-771.010; Interlocal Cooperation Act (Government Code §§791.001, et seq.)

§106.21.Texas Rehabilitation Commission Procurement Objectives.

In addition to procurement objectives which are or may be prescribed by Health and Human Services Commission, the procedures and requirements of this chapter are established to accomplish the following objectives:

(1)

Small Businesses and Businesses Owned by Minorities, Women, and Persons with Disabilities. It is the policy of TRC to ensure that small businesses and businesses that are at least 51% owned by minority group members, women, and persons with disabilities have equal opportunity to compete for and to be selected for the award of contracts. TRC will take all necessary affirmative steps to ensure that such businesses have an opportunity to obtain TRC business. In addition, TRC will assist its contractors to take such affirmative steps.

(2)

Non-Discrimination. TRC does not discriminate on the basis of race, color, religion, sex, national origin, age, disability, or veteran status in the procurement of goods and services.

§106.31.Definitions.

The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:

(1)

Adverse action--Any action in which TRC:

(A)

terminates or suspends a contract between a contractor and TRC before the contract's stated expiration date;

(B)

denies payment in whole or part for any claim(s) arising under a contract when the contractor has filed the claim within the time limits allowed by the contract or by TRC rules;

(C)

terminates or suspends payments in whole or part to a contractor;

(D)

demands payment for contract or rule violations;

(E)

directs one of its contractors to terminate or suspend a subcontract or payments to any subcontractor.

(2)

Bid--An offer to contract with TRC submitted in response to a bid invitation issued by TRC.

(3)

Buyer Support Services (BSS)--The Central Office unit with authority and responsibility for promulgating and maintaining TRC policy and procedures for grant and contract administration. The BSS is the Central Office single-point-of-contact for assisting TRC's customers to comply with these policies and procedures.

(4)

Client choice--Individuals with disabilities have a right under the Rehabilitation Act to make informed choices from among alternative service providers.

(5)

TRC--The Texas Rehabilitation Commission.

(6)

TRC Commissioner--The Chief Administrative Officer of the Texas Rehabilitation Commission.

(7)

Contractor records--All financial and programmatic records, supporting documents, papers, statistical data, or any other written or electronic materials that are pertinent to each specific contract instrument.

(8)

Cost reimbursement contract--An express contractual relationship that requires payment to the contractor and all reasonable, allocable and allowable costs incurred during the performance of the contract.

(9)

Delegation--The written authority of the TRC Commissioner pursuant to Title 7, Human Resources Code, §111.052, and Board Policies Manual to authorize employees serving in designated positions to enter into and sign express contracts.

(10)

Enrollment--The contracting, on a competitive or noncompetitive basis, of vendors or suppliers that meet qualifications or criteria for participation specified by the purchasing entity and agree to provide the contracted goods and/or services in accordance with terms and conditions specified by the purchasing entity.

(11)

Express contract--A written agreement for goods or services signed by TRC and a second party specifying the rights and obligations of each party and the terms and conditions that govern interactions between the parties.

(12)

Fee for service--The amount that TRC pays for a "unit" of service.

(13)

Immediate family--A spouse, child, parent, or sibling of a TRC employee.

(14)

Impartial Hearing Officer (IHO)--A person appointed by the TRC Commissioner to conduct hearings on formal protests and appeals of grant, contract, or contract procurement matters. The IHO must be an impartial person with knowledge of vocational rehabilitation and procurement programs and regulations. An attorney or other staff member who has directly or indirectly participated in, or given advice on, issues that are the basis for a particular hearing cannot be the IHO in that hearing.

(15)

Independent audit--An audit performed by a person independent of the organization in accordance with generally accepted auditing standards.

(16)

Individualized Plan for Employment (IPE)--Plan of services documenting informed client choice from among alternative vocational goals, rehabilitation services, and service providers.

(17)

Mediation--Includes face-to-face meetings and/or negotiations between the contractor and the appropriate Texas Rehabilitation Commission representative without the presence of a third party acting as mediator.

(18)

Noncompetitive procurement--Procurement that promotes a sufficient pool of qualified service providers from which the client can make informed choices. Such open acquisition procurement methodologies include:

(A)

use of only a purchase order;

(B)

use of enrolled providers;

(C)

use of providers responding to a noncompetitive request for offers; and/or

(D)

use of sole source contracts, for the purchase of goods and/or services.

(19)

Notice of Provider Enrollment (NPE)--Notice announcing the availability of a provider enrollment opportunity.

(20)

Person--An individual, partnership, corporation, association, governmental subdivision, or a public or private organization that is not a state agency.

(21)

Provider--An individual or business entity that supplies goods or services to a purchasing entity under an agreement or contract to provide such goods or services.

(22)

Provider enrollment--A noncompetitive method for developing a pool of service providers who have met the service standards and provider qualifications made available by TRC.

(23)

Purchase order--A written document which authorizes the purchase of goods and/or services, which establishes the terms and conditions of the purchase, which obligates TRC to pay for the goods and/or services upon receipt, and which is signed by a representative of TRC.

§106.35.Compliance with Federal Requirements.

The Disability Determination Services will comply with the laws, rules, regulations, and guidelines of the Social Security Administration.

§106.36.Compliance with State Requirements.

TRC will comply with other state requirements as follows:

(1)

If the business relationship with the other party involves purchase of good or services and the purchase is for special or technical goods or services from another state agency, then the appropriate instrument to establish the relationship with the other party is an Interagency Cooperation Contract.

(2)

If the business relationship with the other party involves purchase of goods or services from a local government then the appropriate instrument to establish the relationship with the other party is an Interlocal Cooperation Contract.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102683

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter D. PURCHASE OF GOODS AND SERVICES

40 TAC §106.105

The new section is proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.105.Alternative Purchasing Methods - Schedule of Rates for Medical Services.

Pursuant to Human Resources Code, §111.055(a), the board adopts the following rules and standards governing the determination of rates TRC will pay for medical services.

(1)

A proposed rate schedule for medical services will be developed and maintained by the TRC Deputy Commissioner for Administrative Services. The proposed rate schedule will be updated and submitted for board approval at least annually. The proposed rate schedule will include a comparison of the proposed rate schedule to other cost-based rates for medical services, including Medicaid and Medicare rates, and for any proposed rate that exceeds the Medicare or Medicaid rate, will document the reasons why the proposed rate ensures the best value in the use of dollars for clients.

(2)

The current proposed rate schedule will be made available to members of the public upon request. Members of the public may submit written comments concerning the proposed rate schedule at any time to the TRC Deputy Commissioner for Administrative Services, 4900 North Lamar Boulevard, Austin, Texas 78751.

(3)

Annually, the board shall adopt by rule a schedule of rates based upon the proposed rate schedule submitted by the TRC Deputy Commissioner for Administrative Services. The board shall hold a public hearing before adopting the rate schedule to allow interested persons to submit comments. In adopting the rate schedule, the board shall compare the proposed rate schedule to other cost-based rates for medical services, including Medicaid and Medicare rates, and for any rate adopted that exceeds the Medicare or Medicaid rate, document the reasons why the rate adopted ensures the bast value in the use of dollars for clients.

(4)

The following standards will be used when determining the rates TRC will pay for medical services:

(A)

Rates will be established based on Medicare and Medicaid schedules for current procedural terminology (CPT). Where Medicare and Medicaid schedules are not applicable, rates that represent best value will be established based upon factors that include reasonable and customary industry standards for each specific service.

(B)

Rates will be established at a level adequate to insure availability of qualified providers, and in adequate numbers to provide assessment and treatment, and within a geographic distribution that mirrors client/claimant distribution.

(C)

Exceptions to established rates can be made on a case by case basis by the TRC medical director.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102684

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter J. PROTEST PROCEDURES

40 TAC §106.301

The new section is proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.301.Availability of Protest Procedures.

A potential contractor who has submitted a bid or proposal for a proposed contract may protest non-selection decisions based on alleged improprieties in the contract award process.

(1)

A written protest must be received by the Director of BSS within 15 days of the protestor's receipt of notice of TRC decision being protested. Failure to comply with the foregoing time frame will result in the dismissal of the protest for want of jurisdiction. In order for the protest to be evaluated on its merits, it must state:

(A)

the protestor's name and specific action the protestor is requesting be reconsidered;

(B)

how the decision, action, or inaction by Texas Rehabilitation Commission (TRC) violated published TRC policy, or state or federal laws and regulations regarding procurement, or contract;

(C)

the protestor's claim with specific supporting information (refer to pertinent parts of the original request for proposal, offer, bid, or the award documents);

(D)

an explanation of the facts under disagreement; and

(E)

the subsequent action the offeror is requesting.

(2)

The Director of BSS limits the review of the protest to a desk review of the materials supplied by the protestor and TRC staff who made the decision.

(3)

The Director of BSS sends the decision on the protest to the protestor within 30 days of receipt of the written request.

(4)

A contract may be awarded even though there is a pending protest, if there is a bona fide emergency, or if an award is required by state or federal law to be completed by a particular date.

(5)

TRC's decision on the protest is the final agency action.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102685

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter K. HISTORICALLY UNDERUTILIZED BUSINESSES

40 TAC §§106.351, 106.353, 106.355, 106.357

The new sections are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.351.Purpose.

The purpose of this subchapter is to establish the authority and responsibility to promote full and equal business opportunities for all businesses in state contracting in accordance with the goals specified in the State of Texas Disparity Study. It is the policy of the State of Texas and the Texas Rehabilitation Commission to encourage the use of historically underutilized businesses (HUBs) and to implement this policy through race, ethnic, and gender-neutral means.

§106.353.Applicability.

This subchapter applies to all contracts and purchase orders established under authority delegated to TRC by the General Services Commission, Title 10, Government Code, section 2151. It also applies to all bids, proposals, offers, or other applicable expressions of interest over $100,000 as defined in Texas Administrative Code, Title 1,Part 5, Chapter 111. Subchapter B, §111.14 and Texas Administrative Code Chapter 2161 Subchapter F relating to HUB subcontracting responsibilities.

§106.355.Definitions.

In this subchapter, the following definitions apply.

(1)

Economically Disadvantage Person -- A person who is economically disadvantaged because of the person's identification as a member of a certain group, as defined in Texas Administrative Code, Title 1, Part 5, Chapter 111, Subchapter B, Rule 111.12, and who has suffered the effects of discriminatory practices or other similar insidious circumstances over which the person has no control.

(2)

Good Faith Effort (GFE) -- Evidence of certain criteria used by prime contractors to promote inclusion of HUBs in contracts over $100,000 or more as defined in TAC §111.13 and §111.14. When applied to agency GFE, the state auditor shall consider whether the agency; has adopted rules under §2161.003, Government Code; has used the General Services Commission (GSC) directory and other resources to identify HUBs that are able to contract with the agency; made good faith, timely efforts to contact identified HUBs regarding contracting opportunities; and conducted its procurement program in accordance with the good faith methodology set out in GSC rules.

(3)

Historically Underutilized Business (HUB) -- A business entity that is a corporation, sole proprietorship, partnership, joint venture, etc. owned or operated by an economically disadvantaged person or persons as defined in Texas Administrative Code, Title 1, Part 5, Chapter 111, Subchapter B, Rule 111.12 with its principal place of business in Texas.

(4)

HUB Subcontracting Plan (HSP) -- a plan required to be submitted with bids, proposals, offers, or other applicable expressions of interest that determine or describe HUB subcontracting opportunities probable under the contract as defined in Texas Administrative Code, Title 1, Part 5, Chapter 111, Subchapter B, Rules 111.13 and 111.14.

§106.357.Adoption of Rules.

In accordance with Government Code §2161.003, TRC adopts the rules of the General Services Commission at Title 1, Part 5, Chapter 111, Subchapter B, §§111.11 through 111.28, Texas Administrative Code (relating to the HUB Program), which rules were promulgated by the General Services Commission pursuant to Government Code, §2161.002 .

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102686

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter M. MISCELLANEOUS REQUIREMENTS

40 TAC §§106.451, 106.453, 106.454

The new sections are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.451.Standards of Conduct for Procurement Personnel.

(a)

This section states the ethical standards of conduction required of TRC employees, vendors, and potential vendors when involved in grants or contracts with TRC.

(b)

An employee may not:

(1)

participate in work on a TRC contract knowing that the employee or member of the employee's immediate family has an actual or potential financial interest in the contract, including prospective employment;

(2)

solicit or accept anything of value from an actual or potential vendor;

(3)

be employed by, or agree to work for, a vendor or potential vendor;

(4)

knowingly disclose information for personal gain.

(c)

A former employee may not represent or receive compensation from any person concerning any contractual matter in which the former employee participated during his or her employment with the state.

(d)

A vendor or potential vendor may not offer, give, or agree to give any employee anything of value.

(e)

When an actual or potential violation of subsections (b)-(d) of this section is discovered, the person discovering the violation shall promptly file a written statement concerning the matter with an appropriate supervisor. The person may also request written instructions and disposition of the matter.

(f)

If an actual violation of subsections (b)-(d) of this section occurs or is not disclosed and remedied, the employee in violation may be either reprimanded, suspended, or dismissed.

§106.453.Standards of Conduct for Contracted Vendors and Suppliers.

(a)

A former employee may not represent or receive compensation from any person concerning any contractual matter in which the former employee participated during his or her employment with the state.

(b)

A vendor or potential vendor may not offer, give, or agree to give any employee anything of value.

(c)

When an actual or potential violation of subsections (b)-(d) of this section is discovered, the person discovering the violation shall promptly file a written statement concerning the matter with an appropriate supervisor. The person may also request written instructions and disposition of the matter.

(d)

If an actual violation of subsections (b)-(d) of this section occurs or is not disclosed and remedied, the vendor or potential vendor may be barred from receiving future grants or contracts and an existing grant or contract may be canceled.

§106.454.Purchases for Individual Clients.

Purchases of goods and/or services for individual clients must be consistent with the Individualized Plan for Employment (IPE) which is jointly developed by TRC Counselor and eligible client.

(1)

The IPE includes, but is not limited to:

(A)

goals and intermediate objectives for which the goods and services are necessary;

(B)

estimated date of initiation of the service, and the estimated duration of the service;

(C)

services and service providers chosen by the client from among alternatives presented by the TRC Counselor;

(D)

participation by the client in the cost of the goods and services;

(E)

terms and conditions applicable to the purchase of the goods and services;

(F)

comparable services and benefits applicable to the services to be purchased.

(2)

In developing an individual's IPE, TRC provides the individual, or assists the individual in acquiring, information necessary to make an informed choice from among alternative services and providers of services that are needed to achieve the goal of the IPE.

(3)

In developing an IPE, and prior to purchasing any service for a client, TRC determines whether comparable services and benefits exist under any other program, and whether those services or benefits are available to the individual client. If comparable services or benefits exist and are available to the client within a reasonable period of time, TRC shall use those comparable services and/or benefits to meet, in whole or in part, the cost of services. If TRC and another resource are paying for a good or service for a client, the payment by the other resource must be applied first.

(4)

TRC may establish a reasonable fee schedule for purchased client goods and services. These fee schedules are designed to ensure the lowest reasonable cost and best value.

(5)

TRC issues purchase orders for all purchases of goods and services for individual clients. Purchase orders serve as prior written authorization of the purchase, establish the terms and conditions of the purchase, and obligate TRC to pay for the goods and/or services which are delivered by the provider and received by the client.

(6)

TRC establishes and maintains policies for competitive purchasing of goods and services which exceed the unit dollar value specified.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102687

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter N. CONTRACT ADMINISTRATION

40 TAC §§106.455, 106.457, 106.459, 106.461, 106.463, 106.465, 106.467, 106.469, 106.471 106.473, 106.475, 106.477, 106.479, 106.481, 106.483, 106.563 106.565, 106.567, 106.569

The new sections are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.455.Principles of Contract Administration.

(a)

To provide a foundation for administering contracts funded in whole or part, by or through TRC, TRC must:

(1)

consider the best interests of persons served, the public, and the State of Texas at all times;

(2)

provide for a sufficient pool of qualified service providers and provide the client with information about service providers so that clients may make informed choices from among alternatives;

(3)

use competitive procurement methodologies as the primary procurement methodology whenever possible, to secure best value and to provide an opportunity for all qualified organizations or persons to do business with TRC; and

(4)

use available funds in the most efficient and effective manner in accordance with all applicable state and federal laws and regulations.

(b)

Pursuant to the Uniform Grant and Contract Management Act of 1981 (Texas Government Code, Chapter 783), TRC is required to comply with the Uniform Grant and Contract Management Standards for State Agencies of the Governor's Office of Budget and Planning when administering contracts to state and local governments.

(c)

To ensure that state and/or federal funds have been expended appropriately, TRC will require all contractors receiving grants or operating under cost-reimbursement contracts funded solely with non-federal funds, including for-profit contractors, to comply with OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations.

§106.457.Criteria for Determining when contract is required.

(a)

If the business relationship with the other party involves financial assistance and the other party is responsible for administering the program, then the appropriate instrument to establish the relationship with the other party is a contract.

(b)

If the business relationship with the other party involves purchase of client goods or services and if both of the conditions listed in paragraphs (1) and (2) of this subsection are met, then the appropriate instrument to establish the relationship with the other party is a purchase order, and no additional express contract is required.

(1)

The services are allowed by state or federal law.

(2)

The services are available to the general public.

(c)

If the business relationship with the other party involves purchase of client goods or services and one of the following conditions listed in paragraphs (1)-(6) of this subsection is met, then the appropriate instrument to establish the relationship with the other party is an express contract.

(1)

A contract is required by state or federal law.

(2)

Special or technical goods or services are to be provided by another state agency.

(3)

The goods or services are provided according to TRC designated standards and criteria.

(4)

The need exists to provide special protection to TRC or TRC clients.

(5)

The need exists to clearly differentiate employee versus independent contractor status.

(6)

Defined high risk factors, or other conditions, exist that would make the establishment of an express contract in the best interests of TRC.

§106.459.General Requirements for Contractors.

(a)

A contractor providing goods or services to TRC must comply with all applicable federal or state laws, rules, regulations, and standards.

(b)

TRC shall not contract or do business with contractors whose license, permit, or certificate has been revoked by another Health or Human Services, Public Safety, or Criminal Justice agency.

(c)

A contractor providing goods or services to TRC must disclose to TRC if it is currently held in abeyance from or barred from the award of a federal or state contract.

(d)

A contractor currently held in abeyance from or barred from the award of a federal or state contract may not contract or subcontract with TRC.

(e)

If a contractor is or becomes delinquent in the payment of its Texas franchise tax, payment to the contractor may be withheld until such delinquency is remedied.

(f)

A contractor providing goods or services to TRC clients must report abuse, neglect, and exploitation of TRC clients in compliance with federal and state law.

(g)

A contractor providing goods or services to TRC clients must report to the appropriate state licensing agency any action that a professional, licensed or certified by the State of Texas and employed by the contractor, has committed that constitutes grounds for denial or revocation of the certification or licensure.

(h)

Contractors must certify that they are not delinquent in child support payments as required by the Texas Family Code.

(i)

All contracts for goods and services will also include the following provisions:

(1)

Termination for cause and for mutual convenience of the contractor and TRC including the manner in which it will be implemented;

(2)

Requirements and regulations pertaining to patent rights and copyrights with respect to any discovery, invention, or data which arises or is developed in the course of or under such a contract;

(3)

Access by TRC, the federal government, and other state agencies or any of their duly authorized representatives to any documents, papers, and records of the contractor which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions;

(4)

Requirements for retention of records after the contract is completed and all pending matters are closed;

(5)

Compliance with all applicable federal standards, orders, or requirements regarding environmental protection;

(6)

Compliance with mandatory standards and policies relating to energy efficiency;

(7)

Compliance with lobbying restrictions.

§106.461.Cancellation or Suspension of Solicitation.

TRC has the right to accept or reject all or any part of any bids, offers, or proposals submitted in response to a solicitation as specified in TRC policy. TRC may cancel or suspend a solicitation for any of the following reasons:

(1)

Specifications and costs in the ITB, RFO, or RFP were inadequate, ambiguous, or otherwise deficient;

(2)

Goods or services are no longer required;

(3)

Bids, offers, or proposals received indicated that the services requested can be purchased by a different, less expensive method;

(4)

All bids, offers, and proposals received are considered unreasonable;

(5)

Staff has good reason to believe during the course of procurement that the bids, offers, or proposals are fraudulent or submitted in bad faith; or

(6)

TRC determines that cancellation or suspension is in the State's best interest.

§106.463.Recoupment of Improper Payments.

(a)

TRC recovers improper payments when it is determined that contractors have been overpaid.

(b)

TRC notifies the contractor in writing of the payment discrepancy, the method of computing the reasonable dollar amount to be refunded, and any other actions TRC may take.

§106.465.Settling Disagreements.

(a)

TRC will handle disagreements with the contractor using applicable TRC policies and procedures. TRC may withhold payments, discontinue referrals, and/or remove clients pending resolution of a disagreement.

(b)

When a disagreement rises to the level of a dispute, it will be resolved in accordance with the section on Protests and Appeals.

§106.467.Adverse Actions.

(a)

TRC may implement adverse actions based on nonperformance or noncompliance with the terms of the express contract or grant. These actions may include:

(1)

Suspension of referrals;

(2)

Withholding of payments;

(3)

Disallowance of all or part of the cost of grants and cost reimbursement contracts only;

(4)

Termination; and

(5)

Other remedies allowed by state and federal laws and these rules.

(b)

A contractor or grantee has the right to appeal any adverse action.

§106.469.Contract Termination.

(a)

TRC may terminate a contract for the following reasons:

(1)

Lack of funding;

(2)

Mutual agreement;

(3)

Convenience;

(4)

Making a false certification that is a material breach of contract; and

(5)

Other reasonable cause.

(b)

The letter of notification will be sent by TRC to the contractor.

(c)

When a contract is terminated, a review is conducted to determine any overpayment or underpayment. Settlement of claims under terminated contracts may be made by a negotiated agreement or a determination by TRC. The contractor and each subcontractor are responsible for the prompt settlement of the termination claims, including claims from employees, vendors, and subcontractors.

(d)

When a grant or cost reimbursement contract is terminated, equipment and supplies purchased under the contract may be subject to disposition as determined by TRC in accordance with the terms of the contract.

§106.471.Access to Contractor Facilities and Records.

The following requirements will be included in each contract.

(1)

Contractors must allow TRC and all appropriate federal and state agencies or their representatives access to contractor facilities to inspect, monitor, audit or, evaluate contractor records, and supporting documents pertaining to client goods or services provided. Contractors and subcontractors must make documents available at reasonable times and for reasonable periods.

(2)

Contractors must keep financial and supporting documents, statistical records, and any other records pertinent to the client goods or services for which a claim or cost report is submitted to TRC or its agent. The records and documents must be kept for a period specified in the contract. If any litigation, claim, or audit involving these records begins before the specified time period expires, the contractor must keep the records and documents until all litigation, claims, or audit findings are resolved.

(3)

If a contractor is terminating business operations, the contractor must ensure that:

(A)

records are stored and accessible; and

(B)

that someone is responsible for adequately maintaining the records.

§106.473.Independent Audits.

(a)

Contractors receiving operating funds through grants, cost-reimbursement contracts, and other contracts identified by TRC are required to have an independent audit as specified in the contract terms. Copies of these independent audit reports shall be submitted to TRC for review. Independent audit work papers may also be reviewed at the discretion of TRC.

(b)

The contractors are audited for compliance with federal and state laws and regulations, TRC policy and standards, and the terms of the contract.

§106.475.Contract Monitoring Principles.

All purchases by TRC are subject to monitoring depending on the type of funding source and nature of contract. These may include:

(1)

Verification of delivery of goods or services;

(2)

Verification that the goods or services meet contract specifications;

(3)

Verification that the payment was the correct amount for the goods or services received;

(4)

Verification that the total of any third party payment and any TRC payment did not exceed the maximum contract rate;

(5)

Analysis of aggregate purchases;

(6)

Routine on-site performance and financial monitoring;

(7)

Audit conducted by TRC;

(8)

Independent audit when required by contract terms.

§106.477.Risk Assessment.

TRC risk assessment process targets its on-site monitoring and compliance audit resources. Risk assessment criteria are established in TRC policy.

§106.479.Monitoring Performance.

TRC will compare contractor performance to the goals, outcomes, measures, or standards established in the contract to assess the degree to which they are being met.

§106.481.Monitoring Financial Compliance.

(a)

Financial monitoring is designed to ensure that:

(1)

TRC received the goods or services paid for; and

(2)

The total amount paid by TRC and any third party was not in excess of the contracted amount;

(3)

The contractor maintains the financial records and internal controls necessary to adequately account for claims under the contract.

(b)

TRC may use sampling methods in monitoring and auditing contracts.

(c)

The contractor has the burden of proof in establishing entitlement to payments made under the contract.

§106.483.Corrective Action Plan.

The contractor will prepare and implement a corrective action plan in response to TRC findings of a deficiency. The corrective action plan must be negotiated to the satisfaction of TRC prior to implementation. TRC will subsequently monitor and document the contractor's compliance with the corrective action plan.

§106.563.Debarment and Suspension of Current and Potential Contractor Rights.

(a)

Requirements in this section are applicable to all types of contracts with TRC.

(b)

Termination of rights to continue an existing contract, to receive a new contract, to participate as a provider or manager, or to make a bid, offer, application, or proposal for a TRC contract. The debarment is for a specified time commensurate with the seriousness of the violation, the extent of the violation, prior impositions of sanctions or penalties, willingness to comply with program rules and directives, and other pertinent information. The maximum period of debarment is six years, unless a longer time is mandated by requirements other than those in this chapter.

(c)

Temporary suspension of a contractor's or potential contractor's rights to conduct business with TRC. A suspension is in effect until an investigation, hearing, or trial is concluded and TRC can make a determination about:

(1)

the contractor's future right to contract or subcontract; or

(2)

a potential contractor's future right to have TRC consider its offer, bid, proposal, or application.

(d)

For purposes of both debarment and suspension of contractual rights, TRC may impute the conduct of an individual, corporation, partnership, or other association to the contractor, potential contractor, or the responsible entity of the contractor or potential contractor with whom the individual, corporation, partnership, or other association is employed or otherwise associated. Even though the underlying conduct may have occurred while an individual, corporation, partnership, or other association was not associated with the contractor or potential contractor, suspension of contractual rights or debarment may be imposed. Remedial actions taken by the responsible officials of the contractor or potential contractor will be considered in determining whether either suspension of contractual rights or debarment is warranted.

§106.565.Causes for and Conditions of Debarment.

(a)

TRC may remove contractual rights from an individual or legal entity for causes including, but not limited to, the following:

(1)

being found guilty, pleading guilty, pleading nolo contendere, or receiving a deferred adjudication in a criminal court, relating to:

(A)

obtaining, attempting to obtain, or performing a public or private contract or subcontract;

(B)

embezzlement, theft, forgery, bribery, falsification or destruction of records, any form of fraud, receipt of stolen property, or any other offense indicating moral turpitude or a lack of business integrity or honesty;

(C)

dangerous drugs, controlled substances, or other drug-related offense;

(D)

federal antitrust statutes arising from the submission of bids or proposals;

(E)

any physical or sexual abuse or neglect offense;

(2)

being debarred from contracting by any unit of the federal government or any unit of a state government;

(3)

violating TRC contract provisions including failing to perform according to the terms, conditions, and specifications or within the time limit(s) specified in TRC contract, including, but not limited to, the following:

(A)

failing to abide by applicable federal and state statutes, such as those regarding persons with disabilities and those regarding civil rights;

(B)

having a record of failure to perform or of unsatisfactory performance according to the terms of one or more contracts or subcontracts, if that failure or unsatisfactory performance has occurred within five years preceding the determination to debar. Application of this subsection will be made only for actions occurring after the effective date of these rules. Failure to perform and unsatisfactory performance includes, but is not limited to, the following:

(i)

failing to correct contract performance deficiencies after receiving written notice about them from TRC or its authorized agents;

(ii)

failing to repay or make and follow through with arrangements satisfactory to TRC to repay identified overpayments or other erroneous payments, or assessed liquidated damages or penalties;

(iii)

failing to meet standards that are required for licensure or certification, or that are required by state or federal law, TRC rules, or TRC policy concerning TRC contractors;

(iv)

failing to execute amendments required by TRC;

(v)

billing for services or merchandise not provided to the client by TRC;

(vi)

submitting cost reports containing costs not associated with and/or not covered by the contract or TRC rules and instructions. Intent to increase individual or statewide rates or fees by submission of unallowable costs must be shown for a single cost report, but intent may be inferred when a pattern of submitting cost reports with unallowable costs is shown;

(vii)

submitting a false report or misrepresentation which, if used, may increase individual or statewide rates or fees;

(viii)

charging client or patient fees contrary to TRC rules or policy;

(ix)

failing to notify and reimburse TRC or its agents for services TRC paid for when the contractor received reimbursement from a liable third party;

(x)

failing to disclose or make available, upon demand, to TRC or its representatives (including appropriate federal and state agencies) any records the contractor is required to maintain;

(xi)

failing to provide and maintain services within standards required by statute, regulation, or contract; or

(xii)

violating the Human Resources Code provisions applicable to the contract or any rule or regulation issued under the Code;

(4)

submitting an offer, bid, proposal, or application that contains a false statement or misrepresentation or omits pertinent facts or documents that are material to the procurement;

(5)

engaging in any abusive or neglectful practice that results in or could result in death or injury to the clients served by the contractor; or

(6)

knowingly and willfully using a debarred person or legal entity as an employee, independent contractor, or agent to perform a contract with TRC.

(b)

Individuals, parts of entities, and entities that have been debarred may not:

(1)

receive a contract;

(2)

be allowed to retain a contract which has been awarded before debarment;

(3)

bid or otherwise make offers to receive a contract or subcontract;

(4)

participate in TRC programs which do not require the provider to sign a contract or agreement; or

(5)

either personally or through a clinic, group, corporation, or other association bill to or receive payment from TRC for any services or supplies provided by the debarred entity on or after the effective date of the debarment. Additionally, TRC will not pay for any services ordered, prescribed, or delivered by the debarred entity for TRC recipients after the date of debarment. No costs associated with a debarred entity, including the salary, fringe, overhead, payments to, or any other costs associated with an employee, owner, officer, director, board member, independent contractor, manager, or agent who was debarred may be included in a TRC cost report or any other document which will be used to determine an individual payment rate, a statewide payment rate, or a fee.

(c)

Debarment may be applied against an individual, an entire legal entity, or a specified part of a legal entity.

§106.567.Causes for and Conditions of Suspension.

(a)

TRC may place a contractor's or potential contractor's contractual rights in suspension whenever TRC finds that there is a reasonable basis to believe that grounds for debarment exists. Suspension may be imposed immediately following TRC's notification to a contractor or potential contractor. In addition, suspension may be imposed on a potential contractor if he has an outstanding indictment or TRC has information about an offense that is grounds for indictment.

(b)

Conditions of Suspension.

(1)

TRC may withhold payments, in whole or in part, to the affected contractor during the period of suspension.

(2)

TRC may refuse to accept a bid, offer, application, or proposal from, or to award a contract to, the affected potential contractor during the period of suspension.

(3)

TRC may cease referrals or additional clients to the suspended entity.

(4)

If TRC determines that the underlying reasons for suspension have been resolved in favor of the contractor, TRC must, if applicable:

(A)

pay the withheld payments for any services that may have been provided during the suspension and which meet the terms of an existing contract; and

(B)

resume contract payments.

(5)

If TRC determines that underlying reasons for the suspension have not been resolved in favor of the contractor, TRC will institute debarment proceedings.

(6)

Individuals and entities whose contractual rights have been placed in suspension may not:

(A)

receive a contract; or

(B)

submit an offer, bid, application, or proposal for a contract.

(c)

A suspension may be applied against an individual, an entire legal entity, or a specified part of a legal entity.

§106.569.Proof Required for Debarment or Suspension.

(a)

Causes identified in this title are established by proof of pleading guilty or nolo contendere, or of the issuance of a deferred adjudication of guilt. If an appeal results in a reversal, contractual rights must be restored upon written request, unless another cause for their removal exists.

(b)

Causes identified in this title are based entirely upon the other state or federal agency's official notice that the contractor's or potential contractor's rights have been removed.

(c)

The existence of all other causes for debarment or suspension must be established by a preponderance of the evidence.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102688

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Subchapter O. APPEALS

40 TAC §§106.570, 106.571, 106.573, 106.575 106.577, 106.579, 106.581

The new sections are proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.570.Appeals.

(a)

Appeals based upon final decision letter.

(1)

General. After TRC has issued a final decision letter to the contractor or grantee implementing an adverse action taken by TRC pursuant to §106.467 of this title (relating to Adverse Actions), the contractor or grantee, referred to herein as appellant, has the right to appeal. Except as provided in subsection (b) of this section, a copy of the final decision letter must be included with the appeal, and the appeal must be received by TRC within 60 days after issuance of the final decision letter. Appeals and requests for reconsideration under this section must be sent to TRC by certified mail--return receipt requested.

(2)

Procedures. Appeals must be in writing and submitted to the appropriate deputy commissioner. Written materials that the appellant wishes to have considered may be submitted with the appeal. The appeal should state whether the appellant requests a personal meeting to discuss the appeal, and if the appellant requests, a meeting will be scheduled with a representative of TRC. At the meeting, the appellant may be represented by a person of his or her selection, the appellant will be provided with an opportunity to present evidence and information to support his or her position, and the appellant and TRC may agree to employ a mediator at TRC's expense. A written decision will be provided to the appellant within 30 days after conclusion of the meeting, or if no meeting is held, within 45 days after TRC receives the appeal, unless the appropriate deputy commissioner extends the time.

(3)

Record. The record of an appeal shall consist of a copy of the written appeal; a copy of the final decision letter described in paragraph (1) of this subsection, or if no final decision letter was issued, a copy of the appellant's request for final decision letter described in subsection (b) of this section; a copy of the written decision issued by TRC described in paragraph (2) of this subsection; and if applicable, a copy of any mediation agreement that was executed by TRC and the appellant.

(4)

Request for reconsideration. After the decision on an appeal is issued, the appellant may submit in writing a request for reconsideration. Requests are to be directed to the Assistant Commissioner, Buyer Support Services, and must be received by TRC within 20 days after the decision on the appeal is issued. The request for reconsideration will be decided by or on behalf of the TRC Commissioner. The decision will be based on the record of the appeal described in paragraph (3) of this subsection, a summary prepared by TRC representative of the information provided by the appellant and the evidence accepted by TRC representative at the meeting described in paragraph (2) of this subsection, any written material submitted by the appellant along with his or her request for reconsideration, and TRC representative's response to the request for reconsideration.

(A)

The request for reconsideration shall:

(i)

specifically point out any errors in the record,

(ii)

specify all relief requested, and

(iii)

state all reasons why the relief should be granted.

(B)

The TRC representative shall file his or her response to the request for reconsideration not later than 20 days after TRC's receipt of the request.

(C)

TRC shall issue a decision on the request for reconsideration no later than 45 days after receipt of the request for reconsideration. The decision may affirm, reverse or modify the final decision letter. The decision on the request for reconsideration is the final decision of TRC. If TRC does not rule on the request for reconsideration within 45 days, the written decision on the appeal which is described in paragraph (2) of this subsection becomes the final decision of TRC. TRC and/or his or her designee may extend any time period by ten days upon written request of the appellant or TRC representative.

(b)

Obtaining a final decision letter. If the contractor or grantee believes that an adverse action has been taken against him before a final decision letter has been issued, the contractor or grantee may contact the appropriate deputy commissioner in writing, describe the adverse action which has been taken, and request a final decision letter. Requests for a final decision letter must be submitted to TRC by certified mail--return receipt requested. If TRC does not issue a final decision letter within 30 days after receipt of the request by the deputy commissioner, the contractor or grantee may, at his or her option, appeal within 60 days of receipt of the request by the deputy commissioner. A copy of the request for a final decision letter, along with a U.S. Postal Service or equivalent notice showing receipt of the request by TRC, must be included with the appeal.

§106.571.Claim for Breach of Contract.

(a)

In accordance with Government Code, Chapter 2260, Subchapter B, a contractor may make a claim against TRC for breach of a contract between TRC and the contractor. TRC may assert a counterclaim against the contractor.

(b)

A contractor must provide written notice to TRC of a claim for breach of contract not later than the 180th day after the date of the event giving rise to the claim.

(c)

The notice must state with particularity:

(1)

the nature of the alleged breach;

(2)

the amount the contractor seeks as damages; and

(3)

the legal theory of recovery.

(d)

TRC must assert, in a writing delivered to the contractor, any counterclaim not later than the 90th day after the date of notice under this subsection. If TRC does not comply with this subsection it waives the right to assert the counterclaim.

§106.573.Negotiation.

(a)

The Associate Commissioner for buyer Support Services shall examine the claim and any counterclaim and negotiate with the contractor in an effort to resolve them. Except as provided by subsection (b) of this section, the negotiation must begin not later than the 60th day after the later of:

(1)

the date of termination of the contract;

(2)

the completion date in the original contract; or

(3)

the date the claim is received.

(b)

TRC is entitled to delay the beginning of negotiation until after the 180th day after the date of the event giving rise to the claim.

§106.575.Partial Resolution of Claim.

(a)

If the negotiation under §106.573 of this title (relating to Negotiation) results in the resolution of some disputed issues by agreement or in a settlement, the parties shall reduce the agreement or settlement to writing and each party shall sign the agreement or settlement.

(b)

A partial settlement or resolution of a claim does not waive a party's rights under this chapter as to the parts of the claim that are not resolved.

§106.577.Payment of Claim from Appropriated Funds.

TRC may pay a claim resolved in accordance with this subchapter only from money appropriated to it for payment of contract claims or for payment of the contract that is the subject of the claim. If money previously appropriated for payment of contract claims or payment of the contract is insufficient to pay the claim or settlement, the balance of the claim may be paid only from money appropriated by the legislature for payment of the claim.

§106.579.Incomplete Resolution.

If a claim is not entirely resolved under §106.573 of this title (relating to Negotiation) on or before the 270th day after the date the claim is filed with TRC, unless the parties agree in writing to an extension of time, the contractor may file a request for a hearing under Government Code, Chapter 2260, Subchapter C.

§106.581.Mediation.

(a)

Before the 270th day after the date the claim is filed with TRC and before the expiration of any extension of time under §106.579 of this title (relating to Incomplete Resolution), the parties may agree to mediate the claim made under this subchapter.

(b)

Participation in mediation shall be voluntary on the part of TRC and the contractor.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102689

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Chapter 106. PURCHASE OF GOODS AND SERVICES BY TEXAS REHABILITATION COMMISSION

Subchapter D. PURCHASE OF GOODS AND SERVICES

40 TAC §106.107

The Texas Rehabilitation Commission (TRC) proposes new §106.107, concerning purchase of goods and services by TRC. The change is being proposed to bring TRC's purchasing rules into conformance with contracting policies of the Health and Human Services Commission. The section adopts by reference a rate schedule.

Charles E. Harrison, Jr., Deputy Commissioner for Financial Services, has determined that for the first five-year period the section is in effect, there will be no material fiscal implications for state or local government.

Mr. Harrison also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the section will be the agency's compliance with Chapter 111, Human Resources Code. There will be no material effect on small businesses. There is no material anticipated economic cost to persons who are required to comply with the section as proposed.

Comments on the proposal may be submitted to Roger Darley, Assistant General Counsel, Texas Rehabilitation Commission, 4900 North Lamar Boulevard, Suite 7300, Austin, Texas 78751.

A public hearing will be held prior to adoption of the rate schedule. The hearing will be on June 23, 2001 in the TRC Public Hearing Room, First Floor, 4900 North Lamar Blvd., Austin, Texas 78751. The hearing will be conducted in conjunction with the regular meeting of the TRC Board.

The new section is proposed under the Texas Human Resources Code, Title 7, Chapter 111, §111.018 and §111.023, which provides the Texas Rehabilitation Commission with the authority to promulgate rules consistent with Title 7, Texas Human Resources Code.

No other statute, article, or code is affected by this proposal.

§106.107.Schedule of Rates.

Pursuant to Human Resources Code, §111.0552(b) and Texas Administrative Code Title 40, §106.105(3), the Board of the Texas Rehabilitation Commission adopts by reference the annual schedule rates the Commission will pay for medical services, to be effective September 3, 2001. The schedule of rates may be viewed or copies may be obtained by calling the Texas Rehabilitation Commission at (512-424-4019) or visiting the Texas Rehabilitation Commission at the Brown Heatly Building at 4900 North Lamar; Austin, Texas; 78751.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 14, 2001.

TRD-200102696

Sylvia F. Hardman

Deputy Commissioner for Legal Services

Texas Rehabilitation Commission

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 424-4050


Part 4. TEXAS COMMISSION FOR THE BLIND

Chapter 159. ADMINISTRATIVE RULES AND PROCEDURES

Subchapter D. CONTRACT DISPUTE RESOLUTION

40 TAC §§159.55 - 159.83

The Texas Commission for the Blind proposes new §159.55-159.83, relating to procedures for the negotiation and mediation of certain breach of contract claims asserted by contractors against the Commission pursuant to Government Code, Chapter 2260. Section 2260.052(c) requires that units of state government with rulemaking authority adopt rules to establish negotiation and mediation provisions. These proposed rules have been modeled closely after model rules provided to state agencies by the Office of the Attorney General and the State Office of Administrative Hearings.

§159.55 states that the subchapter governs the negotiation and mediation of claims of breach of contract asserted by a contractor against the Commission. §159.56 explains the types of actions not covered by the subchapter. §159.57 defines terms as they relate to this subchapter. §159.58 provides that the procedures in the subchapter are prerequisites to filing suit under Civil Practice & Remedies Code, Chapter 107 and Government Code, Chapter 2260. §159.59 advises that the Commission has not waived sovereign immunity to suit or to liability. §159.60 sets out the requirements and procedures of the notice of claim of breach of contract that the contractor must assert. §159.61 sets out the requirements and procedures of the counterclaim that the unit of state government must assert. §159.62 covers the disclosure of information.

§§159.63-69 cover negotiation between parties, including a timetable as it relates to negotiations between the contractor and the Commission, how the parties may conduct the negotiation, the parties' settlement approval procedures, the requirements of any resulting settlement agreement, and how the costs of negotiations will be handled by the parties. In the event the breach of contract claim is not resolved in its entirety §159.69 specifies the process by which a contractor may seek resolution of the dispute by SOAH.

§§159.70-159.80 cover the option of mediation available to parties to resolve a breach of contract claim, including a timetable, a method for conducting mediation, qualifications and immunity of the mediator, and settlement procedures. §159.81 provides that if mediation does not resolve the dispute the contractor may request that the claim be referred to SOAH. §159.82 contains a discussion about other assisted negotiation processes open to the parties when a dispute arises.

Alvin Miller, Chief Financial Officer, has determined that there will be no foreseeable implications relating to cost or revenues of the state or local governments as a result of enforcing or administering the rules.

Mr. Miller has also determined that for each year of the first five years that the proposed rules are in effect, the benefit to the public will be the more timely and efficient resolution of contract disputes between contractors and the Commission. The legislature, by enacting Government Code Chapter 2260, has determined that such process, with the potential to recover monetary damages for proven contractual breaches, is of public benefit.

The proposed rules will have no adverse economic effect on small or large businesses and/or persons that contract with the state. In the past, sovereign immunity prevented breach of contract claims against the state and the only process available to the public for resolution of such a claim was to seek and obtain legislative consent to sue. Chapter 2260 and these proposed rules will provide a process by which claims for breach of contract and counterclaims can be asserted and resolved.

The negotiation provisions themselves will impose no economic cost to persons required to comply with the proposed rules because they do not require the use of any particular negotiation mode or method. The proposed rules require only that the parties negotiate to resolve their dispute, and the mode or method of negotiation can be as simple or as complex as the parties decide. The proposed rules specify that absent an agreement to the contrary, the parties are responsible for costs they individually incur in a negotiation or other alternative dispute resolution process.

Similarly, the mediation provisions themselves will impose no economic cost to persons required to comply with the proposed rules unless the parties choose to mediate. If the parties do so, the rules specify that, absent an agreement to the contrary, the parties will share the costs of the mediator and each will be responsible for whatever additional costs they decide to incur for items such as document reproduction, attorneys' fees, experts' fees and consultants' fees.

Questions about the content of this proposal may be directed to Jean Crecelius at (512) 377-0611, and written comments on the proposal may be submitted to Policy and Rules Coordinator, P. O. Box 12866, Austin, Texas 78711, within 30 days from the date of this publication.

The rule is proposed under the authority of Human Resources Code, Title 5, Chapter 91, §91.022, which authorizes the agency to adopt rules prescribing the policies and procedures followed by the commission in the administration of its programs.

The proposed new rules also affect Texas Government Code, Chapter 2260.

§159.55.Purpose.

This purpose of this subchapter is to establish rules for the efficient resolution of contract disputes between contractors and the Commission pursuant to Government Code, Chapter 2260, when efforts to resolve a disagreement concerning the contract in the ordinary course of contract administration under less formal procedures specified in the parties' contract have not been successful.

§159.56.Applicability.

(a)

This subchapter does not apply to an action by the Commission for which a contractor is entitled to a specific remedy pursuant to state or federal constitution or statute.

(b)

This subchapter does not apply to a contract action proposed or taken by the Commission for which a contractor receiving Medicaid funds under that contract is entitled by state statute or rule to a hearing conducted in accordance with Government Code, Chapter 2001.

(c)

This subchapter does not apply to contracts:

(1)

between the Commission and the federal government or its agencies, another state or another nation;

(2)

between the Commission and one or more other units of state government;

(3)

between the Commission and a local governmental body, or a political subdivision of another state;

(4)

between a subcontractor and a contractor;

(5)

subject to §201.112 of the Transportation Code;

(6)

within the exclusive jurisdiction of state or local regulatory bodies;

(7)

within the exclusive jurisdiction of federal courts or regulatory bodies; or

(8)

that are solely and entirely funded by federal grant monies other than for a project defined in §159.57(13) of this title, relating to definitions.

§159.57.Definitions.

The following words and terms, when used in this subchapter, shall have the following meaning, unless the context clearly indicates otherwise:

(1)

Executive director--The chief administrative officer responsible for the day-to-day operations of the Texas Commission for the Blind.

(2)

Claim--A demand for damages by the contractor based upon the Commission's alleged breach of the contract.

(3)

Commission--Texas Commission for the Blind.

(4)

Contract--A written contract between the Commission and a contractor by the terms of which the contractor agrees either:

(A)

to provide goods or services, by sale or lease, to or for the Commission; or

(B)

to perform a project as defined by Government Code, §2166.001.

(5)

Contractor--An independent contractor who has entered into a contract directly with the Commission. The term does not include:

(A)

the contractor's subcontractor, officer, employee, agent or other person furnishing goods or services to a contractor;

(B)

an employee of the Commission; or

(C)

a student at an institution of higher education.

(6)

Counterclaim--A demand by the Commission based upon the contractor's claim.

(7)

Day--A calendar day. If an act is required to occur on a day falling on a Saturday, Sunday, or holiday, the first working day that is not one of these days should be counted as the required day for purpose of this act.

(8)

Event--An act or omission or a series of acts or omissions giving rise to a claim, including, by way of illustration, but not limited to:

(A)

for goods or services:

(i)

the failure of the Commission to timely pay for goods and services;

(ii)

the failure to pay the balance due and owing on the contract price, including orders for additional work, after deducting any amount owed the Commission for work not performed under the contract or in substantial compliance with the contract terms;

(iii)

the suspension, cancellation, or termination of the contract;

(iv)

final rejection of the goods or services tendered by the contractor, in whole or in part;

(v)

repudiation of the entire contract prior to or at the outset of performance by the contractor;

(vi)

withholding liquidated damages from final payment to the contractor.

(B)

in the context of a project:

(i)

the failure to timely pay the unpaid balance of the contract price following final acceptance of the project;

(ii)

the failure to make timely progress payments required by the contract;

(iii)

the failure to pay the balance due and owing on the contract price, including orders for additional work, after deducting any amount owed the Commission for work not performed under the contract or in substantial compliance with the contract terms;

(iv)

the failure to grant time extensions to which the contractor is entitled under the terms of the contract;

(v)

the failure to compensate the contractor for occurrences for which the contract provides a remedy;

(vi)

suspension, cancellation or termination of the contract;

(vii)

rejection by the Commission, in whole or in part, of the "work," as defined by the contract, tendered by the contractor;

(viii)

repudiation of the entire contract prior to or at the outset of performance by the contractor;

(ix)

withholding liquidated damages from final payment to the contractor;

(x)

refusal, in whole or in part, of a written request made by the contractor in strict accordance with the contract to adjust the contract price, the contract time, or the scope of work.

(9)

Goods--Supplies, materials or equipment.

(10)

Mediation--A consensual process in which an impartial third party, the mediator, facilitates communication between the parties to promote reconciliation, settlement, or understanding among them.

(11)

Negotiation--A consensual bargaining process in which the parties attempt to resolve a claim and counterclaim.

(12)

Parties--The commission and contractor that have entered into a contract in connection with which a claim of breach of contract has been filed under this subchapter.

(13)

Project--As defined in Government Code §2166.001, a building construction project that is financed wholly or partly by a specific appropriation, bond issue or federal money, including the construction of the following:

(A)

a building, structure, or appurtenant facility or utility, including the acquisition and installation of original equipment and original furnishing; and

(B)

an addition to, or alteration, modification, rehabilitation or repair of an existing building, structure, or appurtenant facility or utility

(14)

Services--The furnishing of skilled or unskilled labor or consulting or professional work, or a combination thereof, excluding the labor of an employee of the commission.

§159.58.Prerequisites to Suit.

The procedures contained in this subchapter are exclusive and required prerequisites to suit under the Civil Practice & Remedies Code, Chapter 107, and the Government Code, Chapter 2260.

§159.59.Sovereign Immunity.

This subchapter does not waive the commission's sovereign immunity to suit or liability.

§159.60.Contractor Claim.

(a)

A contractor asserting a claim of breach of contract under the Government Code, Chapter 2260, shall file notice of the claim as provided by this section.

(b)

The notice of claim shall:

(1)

be in writing and signed by the contractor or the contractor's authorized representative;

(2)

be delivered by hand, certified mail return receipt requested, or other verifiable delivery service, to the officer of the Commission designated in the contract to receive a notice of claim of breach of contract under the Government Code, Chapter 2260; if no person is designated in the contract, the notice shall be delivered to the Commission's executive director, and

(3)

state in detail:

(A)

the nature of the alleged breach of contract, including the date of the event that the contractor asserts as the basis of the claim and each contractual provision allegedly breached;

(B)

a description of damages that resulted from the alleged breach, including the amount and method used to calculate those damages; and

(C)

the legal theory of recovery, i.e., breach of contract, including the causal relationship between the alleged breach and the damages claimed.

(c)

In addition to the mandatory contents of the notice of claim as required by subsection (b) of this section, the contractor may submit supporting documentation or other tangible evidence to facilitate the commission's evaluation of the contractor's claim.

(d)

The notice of claim shall be delivered no later than 180 days after the date of the event that the contractor asserts as the basis of the claim.

§159.61.Agency Counterclaim.

(a)

If asserting a counterclaim under the Government Code, Chapter 2260, the Commission shall file notice of the counterclaim as provided by this section.

(b)

The notice of counterclaim shall:

(1)

be in writing;

(2)

be delivered by hand, certified mail return receipt requested or other verifiable delivery service to the contractor or representative of the contractor who signed the notice of claim of breach of contract; and

(3)

state in detail:

(A)

the nature of the counterclaim;

(B)

a description of damages or offsets sought, including the amount and method used to calculate those damages or offsets; and

(C)

the legal theory supporting the counterclaim.

(c)

In addition to the mandatory contents of the notice of counterclaim required by subsection (b) of this section, the Commission may submit supporting documentation or other tangible evidence to facilitate the contractor's evaluation of the Commission's counterclaim.

(d)

The notice of counterclaim shall be delivered to the contractor no later than 90 days after the Commission's receipt of the contractor's notice of claim.

(e)

Nothing herein precludes the Commission from initiating a lawsuit for damages against the contractor in a court of competent jurisdiction.

§159.62.Request for Voluntary Disclosure of Additional Information.

(a)

Upon the filing of a claim or counterclaim, parties may request to review and copy information in the possession or custody or subject to the control of the other party that pertains to the contract claimed to have been breached, including, without limitation:

(1)

accounting records;

(2)

correspondence, including correspondence between the Commission and outside consultants it utilized in preparing its bid solicitation or any part thereof or in administering the contract, and correspondence between the contractor and its subcontractors, materialmen, and vendors;

(3)

schedules;

(4)

the parties' internal memoranda;

(5)

documents created by the contractor in preparing its offer to the Commission and documents created by the Commission in analyzing the offers it received in response to a solicitation.

(b)

Subsection (a) of this section applies to all information in the parties' possession regardless of the manner in which it is recorded, including, without limitation, paper and electronic media.

(c)

The contractor and the Commission may seek additional information directly from third parties, including, without limitation, the Commission's third-party consultants and the contractor's subcontractors.

(d)

Nothing in this section requires any party to disclose requested information or any matter that is privileged under Texas and federal laws.

(e)

Material submitted pursuant to this subsection and claimed to be confidential by the contractor shall be handled pursuant to the requirements of the Public Information Act.

§159.63.Negotiation.

The parties shall negotiate in accordance with the timetable set forth in subsection (b) of this section to attempt to resolve all claims and counterclaims. No party is obligated to settle with the other party as a result of the negotiation.

§159.64.Negotiation timetable.

(a)

Following receipt of a contractor's notice of claim, the executive director or other designated representative shall review the contractor's claim(s) and the Commission's counterclaim(s), if any, and initiate negotiations with the contractor to attempt to resolve the claim(s) and counterclaim(s). Subject to subsection (c) of this section, the parties shall begin negotiations within a reasonable period, not to exceed 60 days following the later of:

(1)

the date of termination of the contract;

(2)

the completion date, or substantial completion date in the case of construction projects, in the original contract; or

(3)

the date the Commission receives the contractor's notice of claim.

(b)

Delays. The Commission may delay negotiations until after the 180th day after the date of the event giving rise to the claim of breach of contract by:

(1)

delivering written notice to the contractor that the commencement of negotiations will be delayed; and

(2)

delivering written notice to the contractor when the Commission is ready to begin negotiations.

(c)

Agreed schedule. The parties may conduct negotiations according to an agreed schedule as long as they begin negotiations no later than the deadlines set forth in subsections (b) or (c) of this section, whichever is applicable.

(d)

Completion of negotiations. Subject to subsection (f) of this section, the parties shall complete the negotiations that are required by this subchapter as a prerequisite to a contractor's request for contested case hearing no later than 270 days after the Commission receives the contractor's notice of claim.

(e)

Extensions. The parties may agree in writing to extend the time for negotiations on or before the 270th day after the Commission receives the contractor's notice of claim. The agreement shall be signed by representatives of the parties with authority to bind each respective party and shall provide for the extension of the statutory negotiation period until a date certain. The parties may enter into a series of written extension agreements that comply with the requirements of this section.

(f)

Schedule for requesting contested case hearing. The contractor may request a contested case hearing before the State Office of Administrative Hearings (SOAH) pursuant to §159.69 of this title (relating to Request for Contested Case Hearing) after the 270th day after the Commission receives the contractor's notice of claim, or the expiration of any extension agreed to under subsection (f) of this section.

(g)

Schedule for agreement to mediate. The parties may agree to mediate the dispute at any time before the 270th day after the Commission receives the contractor's notice of claim or before the expiration of any extension agreed to by the parties pursuant to subsection (f) of this section. The mediation shall be governed by §§159.70-159.80 of this chapter.

(h)

Nothing in this section is intended to prevent the parties from agreeing to commence negotiations earlier than the deadlines established in subsections (b) and (c) of this section, or from continuing or resuming negotiations after the contractor requests a contested case hearing before SOAH.

§159.65.Conduct of Negotiation.

(a)

A negotiation under this subchapter may be conducted by any method, technique, or procedure authorized under the contract or agreed upon by the parties, including, without limitation, negotiation in person, by telephone, by correspondence, by video conference, or by any other method that permits the parties to identify their respective positions, discuss their respective differences, confer with their respective advisers, exchange offers of settlement, and settle.

(b)

The parties may conduct negotiations with the assistance of one or more neutral third parties. If the parties choose to mediate their dispute, the mediation shall be conducted in accordance with §§159.70-159.80 of this title. Parties may choose an assisted negotiation process other than mediation, including without limitation, processes such as those described in §§159.82-159.83 of this title.

(c)

To facilitate the meaningful evaluation and negotiation of the claim(s) and any counterclaim(s), the parties may exchange relevant documents that support their respective claims, defenses, counterclaims or positions.

(d)

Material submitted pursuant to this subsection and claimed to be confidential by the contractor shall be handled pursuant to the requirements of the Public Information Act.

§159.66.Settlement Approval Procedures.

The parties' settlement approval procedures shall be disclosed prior to, or at the beginning of, negotiations. To the extent possible, the parties shall select negotiators who are knowledgeable about the subject matter of the dispute, who are in a position to reach agreement, and who can credibly recommend approval of an agreement.

§159.67.Settlement Agreement after Negotiation.

(a)

A settlement agreement may resolve an entire claim or any designated and severable portion of a claim.

(b)

To be enforceable, a settlement agreement must be in writing and signed by representatives of the contractor and the commission who have authority to bind each respective party.

(c)

A partial settlement does not waive a parties' rights under the Government Code, Chapter 2260, as to the parts of the claims or counterclaims that are not resolved.

§159.68.Costs of Negotiation.

Unless the parties agree otherwise, each party shall be responsible for its own costs incurred in connection with a negotiation, including, without limitation, the costs of attorney's fees, consultant's fees and expert's fees.

§159.69.Request for Contested Case Hearing.

(a)

If a claim for breach of contract is not resolved in its entirety through negotiation, mediation or other assisted negotiation process in accordance with this chapter on or before the 270th day after the Commission receives the notice of claim, or after the expiration of any extension agreed to by the parties pursuant to §159.65(f) of this title (relating to Negotiated Timetable), the contractor may file a request with the Commission for a contested case hearing before SOAH.

(b)

A request for a contested case hearing shall state the legal and factual basis for the claim, and shall be delivered to the executive director or other officer designated in the contract to receive notice within a reasonable time after the 270th day or the expiration of any written extension agreed to pursuant to §159.65(f) of this title (relating to Negotiated Timetable).

(c)

The Commission shall forward the contractor's request for contested case hearing to SOAH within a reasonable period of time, not to exceed thirty days after receipt of the request.

(d)

The parties may agree to submit the case to SOAH before the 270th day after the notice of claim is received by the Commission if they have achieved a partial resolution of the claim or if an impasse has been reached in the negotiations and proceeding to a contested case hearing would serve the interests of justice.

§159.70.Option to Mediate.

(a)

The contractor and Commission may agree to mediate the dispute at any time before the 270th day after the Commission receives a notice of claim of breach of contract, or before the expiration of any extension agreed to by the parties in writing.

(b)

The mediation shall be governed by rules contained in this subchapter.

§159.71.Mediation Timetable.

A contractor and the Commission may mediate the dispute even after the case has been referred to SOAH for a contested case. SOAH may also refer a contested case for mediation pursuant to its own rules and guidelines, whether or not the parties have previously attempted mediation.

§159.72.Request for Referral.

If mediation does not resolve all issues raised by the claim, the contractor may request that the claim be referred to SOAH by the Commission. Nothing in these rules prohibits the contractor and the Commission from mediating their dispute after the case has been referred for contested case hearing, subject to the rules of SOAH.

§159.73.Conduct of Mediation.

(a)

A mediator may not impose his or her own judgment on the issues for that of the parties. The mediator must be acceptable to both parties.

(b)

The mediation is subject to the provisions of the Governmental Dispute Resolution Act, Government Code, Chapter 2009.

(c)

To facilitate a meaningful opportunity for settlement, the parties shall select, to the extent possible, representatives who are knowledgeable about the dispute, who are in a position to reach agreement, or who can credibly recommend approval of an agreement.

§159.74.Agreement to Mediate.

(a)

Parties may agree to use mediation as an option to resolve a breach of contract claim at the time they enter into the contract and include a contractual provision to do so. The parties may mediate a breach of contract claim even absent a contractual provision to do so if both parties agree.

(b)

Any agreement to mediate shall include consideration of the following factors:

(1)

The source of the mediator. Potential sources of mediators include governmental officers or employees who are qualified as mediators under Section 154.052, Civil Practice and Remedies Code, private mediators, SOAH, the Center for Public Policy Dispute Resolution at The University of Texas School of Law, an alternative dispute resolution system created under Chapter 152, Civil Practice and Remedies Code, or another state or federal agency or through a pooling agreement with several state agencies. Before naming a mediator source in a contract, the parties should contact the mediator source to be sure that it is willing to serve in that capacity. In selecting a mediator, the parties should use the qualifications set forth in §159.75 of this title, pertaining to qualifications and immunity of mediator.

(2)

The time period for the mediation. The parties should allow enough time in which to make arrangements with the mediator and attending parties to schedule the mediation, to attend and participate in the mediation, and to complete any settlement approval procedures necessary to achieve final settlement. While this time frame can vary according to the needs and schedules of the mediator and parties, it is important that the parties allow adequate time for the process.

(3)

The location of the mediation.

(4)

Allocation of costs of the mediator.

(5)

The identification of representatives who will attend the mediation on behalf of the parties, if possible, by name or position within the Commission or contracting entity.

(6)

The settlement approval process in the event the parties reach agreement at the mediation.

§159.75.Qualifications and Immunity of the Mediator.

(a)

The mediator shall possess the qualifications required under Civil Practice and Remedies Code, §154.052, be subject to the standards and duties prescribed by Civil Practice and Remedies Code, §154.053, and have the qualified immunity prescribed by Civil Practice and Remedies Code, §154.055, if applicable.

(b)

The parties should decide whether, and to what extent, knowledge of the subject matter and experience in mediation would be advisable for the mediator.

(c)

The parties should obtain from the prospective mediator the ethical standards that will govern the mediation.

§159.76.Confidentiality of Mediation and Final Settlement Agreement.

(a)

A mediation conducted under this section is confidential in accordance with Government Code, §2009.054.

(b)

The confidentiality of a final settlement agreement to which the Commission is a signatory that is reached as a result of the mediation is governed by Government Code, Chapter 552.

§159.77.Costs of Mediation.

Unless the contractor and Commission agree otherwise, each party shall be responsible for its own costs incurred in connection with the mediation, including costs of document reproduction for documents requested by such party, attorney's fees, and consultant or expert fees. The costs of the mediation process itself shall be divided equally between the parties.

§159.78.Settlement Approval Procedures.

The parties' settlement approval procedures shall be disclosed by the parties prior to the mediation. To the extent possible, the parties shall select representatives who are knowledgeable about the subject matter of the dispute, who are in a position to reach agreement, and who can credibly recommend approval of an agreement.

§159.79.Initial Settlement Agreement.

Any settlement agreement reach during the mediation shall be signed by the representatives of the contractor and the Commission, and shall describe any procedures required to be followed by the parties in connection with final approval of the agreement.

§159.80.Final Settlement Agreement.

(a)

A final settlement agreement reached during or as a result of mediation that resolves an entire claim or any designated and severable portion of a claim shall be in writing and signed by representatives of the contractor and the Commission who have authority to bind each respective party.

(b)

If the settlement agreement does not resolve all issues raised by the claim and counterclaim, the agreement shall identify the issues that are not resolved.

(c)

A partial settlement does not waive a contractor's rights under the Government Code, Chapter 2260, as to the parts of the claim that are not resolved.

§159.81.Referral to the State Office of Administrative Hearings.

If mediation does not resolve all issues raised by the claim, the contractor may request that the claim be referred to SOAH by the Commission. Nothing in these rules prohibits the contractor and Commission from mediating their dispute after the case has been referred for contested case hearing, subject to the rules of SOAH.

§159.82.Other Assisted Negotiation Processes.

(a)

Parties to a contract dispute under Government Code, Chapter 2260 may agree, either contractually or when a dispute arises, to use assisted negotiation (alternative dispute resolution) processes in addition to negotiation and mediation to resolve their dispute.

(b)

The following factors may help parties decide whether one or more assisted negotiation processes could help resolve their dispute:

(1)

The parties recognize the benefits of an agreed resolution of the dispute;

(2)

The expense of proceeding to contested case hearing at SOAH is substantial and might outweigh any potential recovery;

(3)

The parties want an expedited resolution;

(4)

The ultimate outcome is uncertain;

(5)

There exists factual or technical complexity or uncertainty that would benefit from expertise of a third-party expert for technical assistance or fact-finding;

(6)

The parties are having substantial difficulty communicating effectively;

(7)

A mediator third party could facilitate the parties' realistic evaluation of their respective cases;

(8)

There is an ongoing relationship that exists between parties;

(9)

The parties want to retain control over the outcome;

(10)

There is a need to develop creative alternatives to resolve the dispute;

(11)

There is a need for flexibility in shaping relief;

(12)

The other side has an unrealistic view of the merits of their case;

(13)

The parties (or aggrieved persons) need to hear an evaluation of the case from someone other than their lawyers.

§159.83.Methods of Other Assisted Negotiation and Mediation Processes.

Any of the following methods, or a combination of these methods, or any assisted negotiation process agreed to by the parties, may be used in seeking resolution of disputes or other controversy arising under Government Code, Chapter 2260. If the parties agree to use an assisted negotiation procedure, they shall agree in writing to a detailed description of the process prior to engaging in the process.

(1)

Mediation, as set forth in this subchapter.

(2)

Early evaluation by a third-party neutral, which is a confidential conference during which the parties and their counsel present the factual and legal bases of their claim and receive a nonbinding assessment by an experienced neutral with subject-matter expertise or with significant experience in the substantive area of law involved in the dispute. After summary presentations, the third-party neutral identifies areas of agreement for possible stipulations, assesses the strengths and weaknesses of each party's position, and estimates, if possible the likelihood of liability and the dollar range of damages that appear reasonable to him or her. This is a less complicated procedure than the mini-trial described in paragraph (a)(4) of this section. It may be appropriate for only some issues in dispute, such as where there are clear-cut differences over the appropriate amount of damages. This process may be helpful when:

(A)

the parties agree that the dispute can be settled;

(B)

the dispute involves specific legal issues;

(C)

the parties disagree on the amount of damages;

(D)

the opposition has an unrealistic view of the dispute; or

(E)

the neutral is a recognized expert in the subject area or area of law involved.

(3)

Neutral fact-finding by an expert, in which a neutral third-party expert studies a particular issue and reports findings on that issue. The process usually occurs after most discovery in the dispute has been completed and the significance of particular technical or scientific issues is apparent. The parties may agree in writing that the fact-finding will be binding on them in later proceedings (and entered into as a stipulation in the dispute if the matter proceeds to contested case hearing), or that it will be advisory in nature, to be used only in further settlement discussions between representatives of the parties. This process may be particularly helpful when:

(A)

Factual issues requiring expert testimony may be dispositive of liability or damage issues;

(B)

The use of a neutral is cost effective;

(C)

The neutral's findings could narrow factual issues for contested case hearing.

(4)

Mini-trial, which is generally a summary proceeding before a representative of upper management from each party, with authority to settle, and a third-party neutral selected by agreement of the parties.

(A)

A mini-trial is usually divided into three phases: a limited information exchange phase, the actual hearing, and post-hearing settlement discussions.

(B)

No written or oral statement made in the proceeding may be used as evidence or an admission in any other proceeding.

(C)

The information exchange stage should be brief but it must be sufficient for each party to understand and appreciate the key issues involved in the case. At a minimum, parties should exchange key exhibits, introductory statements, and a summary of witness's testimony.

(D)

At the hearing, representatives of the parties present a summary of the anticipated evidence and any legal issues that must be decided before the case can be resolved. The third-party neutral presides over the presentation and may question witnesses and counsel, as well as comment on the arguments and evidence. Each party may agree to put on abbreviated direct and cross-examination testimony. The hearing generally takes no longer than 1-2 days.

(E)

Settlement discussions, facilitated by the third-party neutral, take place after the hearing. The parties may ask the neutral to formally weigh up the evidence and arguments and give an advisory opinion as to the issues in the case. If the parties cannot reach an agreed resolution to the dispute, either side may declare the mini-trial terminated and proceed to resolve the dispute by other means.

(F)

Mini-trials may be appropriate when:

(i)

The dispute is at a stage where substantial costs can be saved by a resolution based on limited information gathering;

(ii)

The matter justifies the senior executive time required to complete the process;

(iii)

The issues involved include highly technical mixed questions of law and fact;

(iv)

The matter involves trade secrets or other confidential or proprietary information; or

(v)

The parties seek to narrow the large number of issues in dispute.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 7, 2001.

TRD-200102571

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 377-0611


Chapter 163. VOCATIONAL REHABILITATION PROGRAM

Subchapter E. CONSUMER PARTICIPATION IN COST OF SERVICES

40 TAC §163.61

The Texas Commission for the Blind proposes an amendment to §163.61, concerning the scope of Subchapter E, Consumer Participation in Cost of Services. The amendment exempts personal assistance services from consumer participation and modifies the language on exemption of reader and interpreter services. The amendments are required as a result of revised federal regulations.

Alvin Miller, Chief Financial Officer, has determined that there will be no foreseeable implications relating to cost or revenues of the state or local governments as a result of enforcing or administering the amended rule.

Mr. Miller has also determined that for each year of the first five years the rules are in effect the anticipated public benefits will be an increase in the services in which consumer participation is not required. There will be no economic cost to small businesses or individuals as a result of the rule.

Questions about the content of this proposal may be directed to Jean Crecelius at (512) 377-0611, and written comments on the proposal may be submitted to Policy and Rules Coordinator, P. O. Box 12866, Austin, Texas 78711, within 30 days from the date of this publication.

The rule is proposed under the authority of Human Resources Code, Title 5, Chapter 91, §91.022, which authorizes the agency to establish and maintain, by rule, guidelines for the delivery of services by the Commission consistent with state and federal law.

The proposal affects no other statutes.

§163.61.Scope of Subchapter.

(a)

In addition to the exception noted in subsection (b) of this section, all [ All ] vocational rehabilitation services are subject to this subchapter except the following:

(1)

assessment for determining eligibility and priority for services, except for vocational rehabilitation services other than those of a diagnostic nature provided under an extended evaluation;

(2)

assessment for determining vocational rehabilitation needs;

(3)

vocational rehabilitation counseling, guidance, and referral services by commission staff;

(4)

employment assistance services by commission staff;

(5)

training;

(6)

vocational rehabilitation teacher services (including consumable supplies);

(7)

any auxiliary aid or service (e.g., interpreter services, reader services) that an individual with a disability needs in order to participate in the VR program; or [ reader and interpreter services; ]

(8)

orientation and mobility services;

(9)

tuition and fees;

(10)

assistive technology devices and other necessary equipment; [ and ]

(11)

personal assistance services;

(12)

[ (11) ] services paid for or reimbursed by a source other than the commission.

(b)

Individuals receiving Social Security benefits under Titles II or XVI of the Social Security Act are exempt from this subsection.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 7, 2001.

TRD-200102572

Terrell I. Murphy

Executive Director

Texas Commission for the Blind

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 377-0611


Part 12. TEXAS BOARD OF OCCUPATIONAL THERAPY EXAMINERS

Chapter 362. DEFINITIONS

40 TAC §362.1

The Texas Board of Occupational Therapy Examiners proposes an amendment to §362.1, concerning Definitions. The amendment will delete definitions which have been moved to the Supervision Chapter, and add definitions for Non-Licensed Personnel, Occupational Therapy Practitioners, and delete a phrase in the Temporary License definition which is not consistent with the OT Practice Act.

John P. Maline, Executive Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Maline also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be clarification of terms used in the OT rules. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule may be submitted to Augusta Gelfand, OT Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas, 78701, (512) 305-6900, augusta.gelfand@mail.capnet.state.tx.us.

The amendment is proposed under the Occupational Therapy Practice Act, Title 3, Subchapter H, Chapter 456, Occupations Code, which provides the Texas Board of Occupational Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

Title 3, Subchapter H, Chapter 454 of the Occupations Code is affected by this amended section.

§362.1.Definitions.

The following words, terms, and phrases, when used in this part, shall have the following meaning, unless the context clearly indicates otherwise.

(1) - (7)

(No change.)

[(8)

Close Personal Supervision--Implies direct, on-site contact whereby the supervising OTR, LOT, COTA or LOTA is able to respond immediately to the needs of the patient.]

(8)

[ (9) ] Complete Application--Notarized application form with photograph, license fee, jurisprudence examination with at least 70% of questions answered correctly and all other required documents.

(9)

[ (10) ] Complete Renewal--Contains renewal fee, renewal form with signed continuing education affidavit, home/work address(es) and phone number(s), and jurisprudence examination with at least 70% of questions answered correctly [ and supervision log (if applicable) ].

(10)

[ (11) ] Consultation--The provision of occupational therapy expertise to an individual or institution. This service may be provided on a one time only basis or on an ongoing basis.

(11)

[ (12) ] Continuing Education Committee--Reviews and makes recommendations to the board concerning continuing education requirements and special consideration requests.

[(13)

Continuing Supervision, OT--Includes, at a minimum, the following:]

[(A)

Frequent communication between the supervising OTR or LOT and the temporary licensee by telephone, written report or conference, including the review of progress of patients/clients assigned to the OT.]

[(B)

Face-to-face encounters twice a month where the OTR or LOT directly observes the temporary licensee providing OT services to one or more patients/clients.]

[(14)

Continuing Supervision, OTA--Includes, at a minimum, the following:]

[(A)

Frequent communication between the supervising OTR or LOT and the temporary licensee by telephone, written report or conference, including the review of progress of patients/clients assigned to the OTA.]

[(B)

Face-to-face encounters twice a month where the OTR or LOT directly observes the temporary licensee providing OT services to one or more patients/clients.]

[(C)

Sixteen hours of supervision per month must be documented for a full-time OTA. A part-time OTA may prorate the documented supervision, but shall document no less than eight hours per month.]

(12)

[ (15) ] Coordinator of Occupational Therapy Program--The employee of the Executive Council who carries out the functions of the Texas Board of Occupational Therapy Examiners.

(13)

[ (16) ] Direct Service--Refers to the provision of occupational therapy services to individuals to develop, improve, and/or restore occupational functioning.

(14)

[ (17) ] Endorsement--The process by which the board issues a license to a person currently licensed in another state, the District of Columbia, or territory of the United States that maintains professional standards considered by the board to be substantially equivalent to those set forth in the Act, and is apply for a Texas license for the first time.

(15)

[ (18) ] Evaluation--Refers to a process of determining an individual's status for the purpose of determining the need for occupational therapy services or for implementing a treatment program.

(16)

[ (19) ] Examination--The Examination as provided for in Section 17 of the Act. The current Examination is the initial certification Examination given by the National Board for Certification in Occupational Therapy (NBCOT).

(17)

[ (20) ] Executive Council--The Executive Council of Physical Therapy and Occupational Therapy Examiners.

(18)

[ (21) ] Executive Director--The employee of the Executive Council who functions as its agent. The Executive Council delegates implementation of certain functions to the Executive Director.

(19)

[ (22) ] First Available Examination--Refers to the first scheduled Examination after successful completion of all educational requirements.

[(23)

General Supervision--Includes, at a minimum, the following:]

[(A)

Frequent communication between the supervising OTR or LOT and the regular or provisional COTA or LOTA by telephone, written report or conference, including the review of progress of patients/clients assigned to the COTA or LOTA.]

[(B)

Eight hours of supervision per month must be documented for a full-time COTA or LOTA. Twenty-five percent of the required documented supervision time must consist of face-to-face encounters where the OTR or LOT directly observes the COTA or LOTA providing OT services to one or more patients/clients.]

[(C)

A part-time COTA or LOTA may prorate the documented supervision.]

(20)

[ (24) ] Health Care Condition--See Medical Condition

(21)

[ (25) ] Investigation Committee--Reviews and makes recommendations to the board concerning complaints and disciplinary actions regarding licensees and facilities.

(22)

[ (26) ] Investigator--The employee of the Executive Council who conducts all phases of an investigation into a complaint filed against a licensee, an applicant, or an entity regulated by the board.

(23)

[ (27) ] Jurisprudence Examination--An examination covering information contained in the Texas Occupational Therapy Practice Act and Texas Board of Occupational Therapy Examiners rules. This test is an open book examination with multiple choice or true-false questions. [ made up of multiple choice and/or true-false questions. ] The passing score is 70%.

(24)

[ (28) ] License--Document issued by the Texas Board of Occupational Therapy Examiners which authorizes the practice of occupational therapy in Texas.

(25)

[ (29) ] Licensed Occupational Therapist (LOT)--A person who holds a valid regular or provisional license to practice or represent self as an occupational therapist in Texas.

(26)

[ (30) ] Licensed Occupational Therapy Assistant (LOTA)--A person who holds a valid regular or provisional license to practice or represent self as an occupational therapy assistant in Texas and who is required to practice under the general supervision of an OTR or LOT.

(27)

[ (31) ] Medical Condition--A condition of acute trauma, infection, disease process, psychiatric disorders, addictive disorders, or post surgical status. Synonymous with the term health care condition.

(28)

[ (32) ] Monitored Services--The checking on the status/condition of students, patients, clients, equipment, programs, services, and staff in order to make appropriate adjustments and recommendations. Minimum contact for the purpose of monitoring will be one time a month.

(29)

[ (33) ] NBCOT (formerly AOTCB)--National Board for Certification in Occupational Therapy (formerly American Occupational Therapy Certification Board).

(30)

Non-licensed Personnel--OT Aide or OT Orderly or other person not licensed by this board who provides support services to occupational therapists and occupational therapy assistants, and whose activities require on-the-job training and close personal supervision.

(31)

[ (34) ] Non-Medical Condition--A condition where the ability to perform occupational roles is impaired by developmental disabilities, learning disabilities, the aging process, sensory impairment, psychosocial dysfunction, or other such conditions which does not require the routine intervention of a physician.

(32)

[ (35) ] Occupational Therapist (OT)--A person who holds a Temporary License to practice as an occupational therapist in the state of Texas, who is waiting to receive results of taking the first available Examination, and who is required to be under continuing supervision of an OTR or LOT.

(33)

[ (36) ] Occupational Therapist, Registered (OTR)--An alternate term for a Licensed Occupational Therapist. An individual who uses this term must hold a regular or provisional license to practice or represent self as an occupational therapist in Texas. An individual who uses this term is responsible for ensuring that he or she is otherwise qualified to use it.

(34)

[ (37) ] Occupational Therapy--The use of purposeful activity or intervention to achieve functional outcomes. Achieving functional outcomes means to develop or facilitate restoration of the highest possible level of independence in interaction with the environment. Occupational Therapy provides services to individuals limited by physical injury or illness, a dysfunctional condition, cognitive impairment, psychosocial dysfunction, mental illness, a developmental or learning disability or an adverse environmental condition, whether due to trauma, illness or condition present at birth. Occupational therapy services include but are not limited to:

(A)

The evaluation/assessment, treatment and education of or consultation with the individual, family or other persons;

(B)

interventions directed toward developing, improving or restoring daily living skills, work readiness or work performance, play skills or leisure capacities;

(C)

intervention methodologies to develop restore or maintain sensorimotor, oral-motor, perceptual or neuromuscular functioning; joint range of motion; emotional, motivational, cognitive or psychosocial components of performance.

(35)

[ (38) ] Occupational Therapy Assistant (OTA)--A person who holds a Temporary License to practice as an occupational therapy assistant in the state of Texas, who is waiting to receive results of taking the first available Examination, and who is required to be under continuing supervision of an OTR or LOT.

(36)

[ (39) ] Occupational Therapy Plan of Care--A written statement of the planned course of Occupational Therapy intervention for a patient/client. It must include goals, objectives and/or strategies, recommended frequency and duration, and may also include methodologies and/or recommended activities.

(37)

Occupational Therapy Practitioners--Occupational Therapists and Occupational Therapy Assistants licensed by this board.

[(40)

OT Aide or OT Orderly--A person who aids in the practice of occupational therapy and whose activities require on-the-job training and close personal supervision by an OTR, LOT, COTA or LOTA.]

(38)

[ (41) ] Place(s) of Business--Any facility in which a licensee practices.

(39)

[ (42) ] Practice--Providing occupational therapy as a clinician, practitioner, educator, or consultant. Only a person holding a license from TBOTE may practice occupational therapy in Texas.

(40)

[ (43) ] Recognized Educational Institution--An educational institution offering a course of study in occupational therapy that has been accredited or approved by the American Occupational Therapy Association.

(41)

[ (44) ] Regular License--A license issued by TBOTE to an applicant who has met the academic requirements and who has passed the Examination.

(42)

[ (45) ] Rules--Refers to the TBOTE Rules.

(43)

[ (46) ] Screening--A process or tool used to determine a potential need for occupational therapy interventions. This information may be compiled using observation, medical or other records, the interview process, self-reporting, and/or other documentation.

(44)

Supervision--See Chapter 373 of this title (relating to Supervision).

(45)

[ (47) ] Temporary License--A license issued by TBOTE to an applicant who meets all the qualifications for a license except taking the first available Examination after completion of all education requirements[ ; or a license issued to an applicant who has passed the Examination but has not been employed as an OTR, LOT, COTA or LOTA for five years or more from the receipt date of current, complete application for licensure with TBOTE ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 10, 2001.

TRD-200102631

John Maline

Executive Director

Texas Board of Occupational Therapy Examiners

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 305-6900


Chapter 364. REQUIREMENTS FOR LICENSURE

40 TAC §§364.1 - 364.4

The Texas Board of Occupational Therapy Examiners proposes amendments to §§364.1 - 364.4 concerning Requirements for Licensure. The amendments will delete sponsorship requirements for Provisional license, outline re-exam procedures, and more clearly defines limits on applications.

John P. Maline, Executive Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rules.

Mr. Maline also has determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be clarification of re-examination procedures, remove requirements for the Provision license and explain the time frames for applications. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the rules as proposed.

Comments on the proposed rules may be submitted to Augusta Gelfand, OT Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas, 78701, (512) 305-6900, augusta.gelfand@mail.capnet.state.tx.us.

The amendments are proposed under the Occupational Therapy Practice Act, Title 3, Subchapter H, Chapter 456, Occupations Code, which provides the Texas Board of Occupational Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

Title 3, Subchapter H, Chapter 454 of the Occupations Code is affected by the amended sections.

§364.1.Requirements for Licensure.

(a) - (h)

(No change.)

(i)

The first regular license is valid from the date of issuance until the last day of the applicant's next birth month. If the applicant's birth month is within 90 days after the license is issued, the license will be valid until the last day of the birth month in the following year. An initial regular license will be valid no less than 3 [ 4 ] months, no longer than 15 months.

§364.2.Initial License by Examination.

(a)

An Applicant applying for license by examination must

(1) - (2)

(No change.)

(3)

Application for license must be received no later than two years following date of exam.

(b)

(No change.)

(c)

An applicant who fails an examination may take additional examinations by sending in the appropriate fee with the board's re-exam form. [ a second examination by submitting a new application and fee. ]

[(1)

An applicant who fails the second examination may take a third examination after a specific period of not longer than one year if the applicant meets the requirements prescribed for a previous examination.]

[(2)

An applicant who fails the third examination may take an additional test at the board's discretion.]

(d)

An application for license is valid for one year from the date it is received by the board. During that year, a re-exam fee may be paid to the board for each subsequent exam taken by the applicant. At the end of the year the application fee must be paid to continue the application process for the second year. The process will then continue under the terms of the original application.

§364.3.Temporary License.

(a)

(No change.)

(b)

An applicant who has not begun the process before the first available exam may not obtain a temporary license but may become licensed under §364.2 of this title (relating to Initial License by Examination).

(c)

[ (b) ] To be issued a temporary license, the applicant must:

(1)

meet all provision of §364.1 of this title (relating to Requirement for a License);

(2)

meet all provisions of §364.2 of this title (relating to License by Examination);

(3)

submit the Confirmation of Examination Registration and Eligibility to Examine form from NBCOT, which must be sent directly to the board by NBCOT;

(4)

submit a signed Verification of Supervision form as provided by the board;

(5)

send the board the application fee as set by the Executive Council.

(d)

[ (c) ] If the applicant fails to take the first available examination, or fails to have the scores reported, the temporary license will be revoked.

(e)

[ (d) ] If the applicant fails the examination, the temporary license is void and must be returned. No second temporary licenses are issued after failure of the examination.

§364.4.Licensure by Endorsement.

(a)

(No change.)

(b)

Provisional License: The Board may grant a Provisional License prior to an applicant who is applying for License by endorsement if there is an unwarranted delay in the submission of required documentation outside the applicant's [ applicant ] control. All other requirements for licensure [ requirements for a license ] by endorsement must be met. The applicant must also submit the Provisional License fee as set by the Executive Council[ , and notarized proof of sponsorship by a licensee of this board, before the license may be issued ]. The Board may not grant a provisional license to an applicant with disciplinary action in their license history, or to an applicant with pending disciplinary action.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 10, 2001.

TRD-200102632

John Maline

Executive Director

Texas Board of Occupational Therapy Examiners

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 305-6900


Chapter 367. CONTINUING EDUCATION

40 TAC §§367.1 - 367.3

The Texas Board of Occupational Therapy Examiners proposes an amendment to §367.1 and proposes new §367.2 and §367.3 concerning Continuing Education. The amendments and new rules will add addition means of obtaining continuing education, explain the requirement to new licensees, and add a requirement for those finishing this requirement later than 90 days after the license is due to be renewed. The amendment and new rules add the Type 1 and Type 2 continuing education requirements and a listing of not acceptable continuing education.

John P. Maline, Executive Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rules.

Mr. Maline also has determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be increased assurance that the licensee are meeting the continuing educational requirements. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the rules as proposed.

Comments on the proposed rules may be submitted to Augusta Gelfand, OT Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas, 78701, (512) 305-6900, augusta.gelfand@mail.capnet.state.tx.us.

The amendment and new rules are proposed under the Occupational Therapy Practice Act, Title 3, Subchapter H, Chapter 456, Occupations Code, which provides the Texas Board of Occupational Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

Title 3, Subchapter H, Chapter 454 of the Occupations Code is affected by the proposal.

§367.1.Continuing Education.

(a)

The Act[ , §5(A), ] mandates licensee participation in a continuing education program for license renewal. All continuing education must be directly relevant to the profession of occupational therapy. The licensee is solely responsible for keeping accurate documentation of all continuing education requirements. [ The Executive Council staff will conduct, at least yearly, an audit of a randomly drawn sample of licensees to determine compliance with continuing education rules. Failure to maintain accurate documentation, or failure to respond to a request to submit documentation for an audit, may result in disciplinary action by the board. The audit results will be reported to the board. ]

[(1)

Licensees randomly selected for the audit must provide to TBOTE appropriate documentation within 30 days of notification.]

[(2)

Continuing Education Documentation must be maintained for two years from the date of the last renewal for auditing purposes.]

(b)

Continuing education documentation includes, but is not limited to, a final official transcript, AOTA self-study completion certificates, copies of official sign-in or attendance sheets, course certificates of attendance, certificates of completion, and official correspondence from the board approving requesting credits.

(c)

The first regular license, which has a duration of less than 2 years, does not have a continuing education requirement.

(d)

All licensees, except those addressed in subsection (b) of this section must complete 30 hours of continuing education every two years during the period of time the license is current in order to renew the license. Those renewing a license more than 90 days late must submit proof of continuing education for the renewal.

(1)

General information hereafter referred to as Type 1 continuing education is relevant to the profession of occupational therapy. Examples include by are not limited to: supervision, education, documentation, quality improvement, administration, reimbursement and other OT related subjects.

(2)

A minimum of 15 hours of continuing education must be in skills relevant to occupational therapy practice with patients or clients hereafter referred to as Type 2.

(A)

Type 2 courses teach occupational therapy treatment and intervention with patients or clients.

(B)

All continuing education hours may be in Type 2.

(e)

Any continuing education submissions may be counted only one time.

[(b)

Licensees must complete 30 hours of continuing education every two years. These requirements must be met before the month the license is expected to be renewed.]

[(c)

A minimum of 15 hours of continuing education must be in skills relevant to occupational therapy practice with patients or clients. This requirement is effective beginning with licenses due for renewal in January 2000.]

[(d)

Continuing education credit may be earned in the following manner:]

[(1)

Attendance at workshops, refresher courses, in-services, professional conferences, seminars, or facility-based continuing education programs. Hour for hour credit on program content only. No maximum;]

[(2)

Presentations by Licensee:]

[(A)

Professional presentations, e.g., in-services, workshops, institutes (any presentation counted only one time). Hour for hour credit, 10 hours maximum;]

[(B)

Community/service organization presentations (any presentation counted only one time). Hour for hour credit. Four hours maximum;]

[(3)

Formal academic coursework:]

[(A)

One or two credit hour classes 2 continuing education hours;]

[(B)

Three or four credit hour classes 4 continuing education hours;]

[(4)

AOTA Self-study Series: Hour for hour credit based on the number of hours awarded by AOTA for each course. (Any course can be counted only once per licensee.) No maximum;]

[(5)

Development of publications, media materials or research/grant activities. A request to receive credit for this category must be submitted in writing to the Coordinator of Occupational Therapy no later than 60 days before the current license expiration date. The request must include a description of the activity/course, the sponsoring group, its direct relevance to the occupational therapy profession, and the number of hours to complete it. (Any publication, media materials, or research or grant activities can be counted only once per licensee). 10 hours;]

[(6)

First Aid and cardiopulmonary resuscitation training, either initial instruction or refresher training, can only be submitted for continuing education once per licensee;]

[(7)

Home study courses, Internet-based courses, and videotape instruction: A request to receive credit for this category must be submitted in writing to the Coordinator of Occupational Therapy no later than 60 days before the current license expiration date. The request must include the course title, the number of hours required for completion, the sponsoring group, and a description of its direct relevance to the occupational therapy profession. (Any course or videotape can be counted only once per licensee). No maximum;]

[(e)

Any deviation from the above continuing education categories will be reviewed on a case by case basis by the Coordinator of Occupational Therapy or by the Continuing Education Committee. The request must include a description of the activity/course, sponsoring group, its direct relevance to the occupational therapy professional, and the number of hours to complete it. A request for special consideration must be submitted in writing a minimum of 60 days prior to expiration of the license.]

[(f)

Continuing education documentation includes, but is not limited to, final official transcripts, AOTA self-study completion certificates, copies of official sign-in or attendance sheets, and official correspondence from the Executive Council or board approving requested credits.]

[(1)

The continuing education record card (blue card) will no longer be accepted as proof of continuing education activities effective December 1, 2001.]

[(2)

Documentation must identify the licensee by name and license number, and must include the date and title of the course, the signature of the authorized signer, and the number of CEUs or contact hours awarded for the course.]

§367.2.Categories of Continuing Education.

(a)

Continuing education undertaken by a licensee for renewal shall be acceptable if it falls in one or more of the following categories.

(1)

Formal academic courses related to occupational therapy. Completion of course work at or through an accredited college or university shall be counted as follows: three CE hours for each credit hour of a course with a grade of A, B, C, and/or P (Pass). Thus a three-credit course counts for 9 credit hours of continuing education. All college course work must comply with Type 1 and Type 2 as outlined in §367.1 of this title (relating to Continuing Education).

(2)

In-service educational programs, training programs, institutes, seminars, workshops, facility based courses, and conferences in occupational therapy. Hour for hour credit on program content only, no maximum.

(3)

Development of publication, media materials or research/grant activities per two year renewal period.

(A)

Published scholarly work in a peer-review journal, 15 hours maximum.

(B)

Secondary author (second or other author), 7 hours maximum.

(C)

Published book or book chapter(s), 10 hours maximum.

(D)

Second author, 6 hours maximum.

(E)

Other publications such as newsletter and trade magazines, 2 hours maximum.

(F)

Principle investigator or co-principle investigator in grant or research proposals accepted for consideration.

(4)

Home study courses, Internet-based courses, and videotape instruction.

(A)

Courses must fit the criteria for continuing education for Type 1 or Type 2.

(B)

These courses must have a post-test and give a certificate of completion.

(C)

Internet courses must reflect a pre-determined number of credit hours.

(5)

Professional presentations by licensee

(A)

Professional presentation, e.g. in-services, workshops, institutes: any presentations counted only one time. Hour for hour credit. 10 hour maximum.

(B)

Community/Service organization presentation: any presentation counted once. Hour for hour credit. 10 hours maximum.

(6)

Any deviation from the above continuing education categories will be reviewed on a case by case basis by the Coordinator of Occupational Therapy or by the Continuing Education Committee. A request for special consideration must be submitted in writing a minimum of 60 days prior to expiration of the license.

(b)

Unacceptable Continuing Education Activities include but are not limited to

(1)

Any non-instructional time frames such as breaks, meals, introductions, and pre/post testing.

(2)

Business meetings

(3)

Exhibit hall attendance

(4)

Reading journals

(5)

Courses such as grant writing, case management, massage therapy, general management and business, social work, defensive driving, water safety, team building, GRE, GMAT, MCAT preparation, cooking for health, weight management, women's health and stress management, reading techniques, geriatric anthology, general foreign languages.

§367.3.Continuing Education Audit.

(a)

The board shall select for audit a random sample of licensees. The audit will cover a period for which the licensee has already completed the 30 hours required and has signed to that fact on the renewal form.

(b)

Licensees randomly selected for the audit must provide to TBOTE appropriate documentation within 30 days of notification. Documentation submitted must specify whether they are Type 1 or Type 2.

(c)

Continuing education documentation must be maintained for two years from the date of the last renewal for auditing purposes, or a total of four years.

(1)

The continuing education record card (blue card) will no longer be accepted as proof of continuing education activities, effective December 1, 2001.

(2)

Documentation must identify the licensee by name and license number, and must include the date and title of the course, the signature of the authorized signer, and the number of CEUs or contact hours awarded for the course.

(d)

Knowingly providing false information or failure to respond during the audit process or the renewal process is grounds for disciplinary action.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 10, 2001.

TRD-200102633

John Maline

Executive Director

Texas Board of Occupational Therapy Examiners

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 305-6900


Chapter 370. LICENSE RENEWAL

40 TAC §370.1

The Texas Board of Occupational Therapy Examiners proposes an amendment to §370.1 concerning License Renewal. The amendments add a requirement that those renewing their license more than 90 days late must submit proof of their continuing education with their renewal.

John P. Maline, Executive Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Maline also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be clarification of late renewal requirements. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule may be submitted to Augusta Gelfand, OT Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas, 78701, (512) 305-6900, augusta.gelfand@mail.capnet.state.tx.us.

The amendment is proposed under the Occupational Therapy Practice Act, Title 3, Subchapter H, Chapter 456, Occupations Code, which provides the Texas Board of Occupational Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

Title 3, Subchapter H, Chapter 454 of the Occupations Code is affected by this amended section.

§370.1.License Renewal.

(a)

Licensees are required to renew their licenses every two years by the end of their birth month. A licensee may not provide occupational therapy services without a current license or renewal certificate in hand. If a license expires after all required items are submitted but before the licensee received the renewal certificate, the licensee may not provide occupational therapy services until the renewal certificate is in hand.

(1)

General Requirements. The renewal application is not complete until the Board receives all required items. The components required for license renewal are:

(A)

Signed renewal application form verifying completion of 30 hours of continuing education ( see [ SEE ] Chapter 367 of this title (relating to Continuing Education ) );

(B) - (C)

(No change.)

(2)

(No change.)

(3)

Late Renewals. A renewal application is late if all required materials are not postmarked prior to the expiration date of the license. Licensees who do not complete the renewal process prior to the expiration date are subject to late fees as described.

(A)

(No change.)

(B)

If the license has been expired for more than 90 days, the late fee is equal to the examination fee for the license. Those renewing a license more than 90 days late must submit the documentation for the required continuing education with the renewal.

(C)

If the license has been expired for one year or longer, the person may not renew the license. To obtain a new license, the applicant must retake and pass the national examination and comply with the requirements and procedure for obtaining an original license set by Chapter 364 of this title (relating to Requirements for Licensure ) .

(b) -(c)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 10, 2001.

TRD-200102634

John Maline

Executive Director

Texas Board of Occupational Therapy Examiners

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 305-6900


Chapter 372. PROVISION OF SERVICES

40 TAC §372.1

The Texas Board of Occupational Therapy Examiners proposes an amendment to §372.1 concerning Provision of Services. The amendments are a reorganization of the chapter. It differentiates between medical and non-medical condition, screening, evaluation and plan of care.

John P. Maline, Executive Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Maline also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be clarification of terms and clarification of roles. It also adds the ability to work in telehealth. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule may be submitted to Augusta Gelfand, OT Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas, 78701, (512) 305-6900, augusta.gelfand@mail.capnet.state.tx.us.

The amendment is proposed under the Occupational Therapy Practice Act, Title 3, Subchapter H, Chapter 456, Occupations Code, which provides the Texas Board of Occupational Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

Title 3, Subchapter H, Chapter 454 of the Occupations Code is affected by this amended section.

§372.1.Provision of Services.

(a)

Medical Conditions

(1)

Treatment for a medical condition by an occupational therapy practitioner requires a referral from a licensed referral source.

(2)

The referral may be an oral or singed written order. If oral, it must be followed by a signed written order.

(3)

If a written referral signed by the referral source is not received by the third treatment or within two weeks from the receipt of the oral referral, whichever is late, the therapist must have documented evidence of attempt(s) to contact the referral source for the written referral (e.g., registered letter, fax, certified letter, email, return receipt, etc.). The therapist must exercise professional judgement to determine cessation or continuation of treatment with a receipt of the written referral.

(b)

Non-Medical Conditions

(1)

Consultation, monitored services, and evaluation for need of services may be provided without a referral.

(2)

Non-medical conditions do not require a referral. However, a referral must be requested at any time during the evaluation or treatment process when necessary to insure the safety and welfare of the consumer.

[(a)

Referral. Occupational therapists may accept referrals from all qualified licensed health care professionals who within the scope of licensure are authorized to refer for healthcare services. This includes but is not limited to dentists, chiropractors, and podiatrists.]

[(1)

Consultation, monitored services, screening, and evaluation for need of services may be provided without a referral.]

[(2)

Occupational therapy for non-medical conditions (refer to §362.1 of this title (relating to Definitions)) does not require a referral. However, a referral must be requested at any time during the evaluation or treatment process when necessary to insure the safety and welfare of the consumer.]

[(3)

The provision of direct treatment by an OTR, LOT, COTA or LOTA for medical conditions requires a referral. A referral may be an oral or written order to initiate services. If an oral referral is received, it must be followed by a written order signed by the referral source requesting the services.]

[(4)

An oral referral for evaluation and/or treatment must be received and documented by a licensed health care provider.]

[(5)

If a written referral is not received by the third treatment or within two weeks from receipt of the oral referral, whichever is later, the therapist must have documented evidence of attempt(s) to contact the referral source for a written referral (e.g., registered letter, fax, certified letter, e-mail, return receipt, etc.). The therapist must exercise professional judgment to determine cessation or continuation of treatment without receipt of the written referral.

[(b)

A COTA or LOTA may assist in the provision of OT services as specified in §373.1(b) of this title (relating to Supervision).]

(c)

Screening [ and Evaluation ]. A screening may be performed by an occupational therapist or an occupational therapy assistant.

[(1)

Screening for occupational therapy services must be initiated and completed by a TBOTE licensee.]

[(2)

Occupational therapy intervention may not be provided without an occupational therapy evaluation completed by an OTR or LOT.]

(d)

Evaluation.

(1)

Only an occupational therapist may perform the evaluation.

(2)

An occupational therapy plan of care must be based on an occupational therapy evaluation.

(3)

The occupational therapist must have face-to-face, real time interaction with the patient or client during the evaluation process.

(e)

Plan of Care

(1)

Only an occupational therapist may initiate, develop, modify or complete an occupational therapy plan of care.

(2)

The occupational therapist and occupational therapy assistant may work jointly to revise the short-term goals, but the final determination resides with the occupational therapist.

(3)

An occupational therapy plan of care may be integrated into an interdisciplinary plan of care, but the occupational therapy goals or objectives must be easily identifiable in the plan of care.

(4)

Only occupational therapy practitioners licensed by the Texas Board of Occupational Therapy Examiners (TBOTE) may implement the plan of care.

(5)

Only the occupational therapist or occupational therapist assistant may train non-licensed personnel or family members to carry out specific tasks that support the occupational therapy plan of care.

(6)

The occupational therapist may delegate to an occupational therapy assistant the collection of data for the assessment. The occupational therapist is responsible for the accuracy of the data collected by the assistant.

(7)

The occupational therapist is responsible for determining whether intervention is needed and if a referral is required for occupational therapy intervention.

(8)

The occupational therapist or the occupational therapy assistant must have face-to-face, real time interaction with the patient or client during the intervention process.

(9)

It is the occupational therapist's responsibility to ensure that all documentation which becomes part of the patient's/client's permanent record is approved and co-signed by the occupational therapist and signed on the bottom of each page.

[(d)

Occupational Therapy Plan of Care Development.]

[(1)

An occupational therapy plan of care must be based on an occupational therapy evaluation.]

[(2)

The occupational therapy plan of care (refer to §362.1 of this title (relating to Definitions)) must be developed by an OTR or LOT.]

[(3)

An occupational therapy plan of care may be integrated into an interdisciplinary plan of care, but occupational therapy goals or objectives must be easily identifiable in the plan of care.]

[(4)

Only an OTR or LOT may change an occupational therapy plan of care.]

[(e)

Occupational Therapy Plan of Care Implementation.]

[(1)

Only licensed occupational therapy personnel may implement an occupational therapy plan of care.]

[(2)

Only licensed occupational therapy personnel may train non-licensed individuals to carry out specific tasks that support the occupational therapy plan of care.]

(f)

Discharge.

(1)

Only an occupational therapist has the authority to discharge patients from occupational therapy services. The discharge is based on whether the patient or client has achieved predetermined goals, has achieved maximum benefit from occupational therapy services; or when other circumstances warrant discontinuation of occupational therapy services.

(2)

The occupational therapist is responsible for the content and validity of the discharge summary and must sign the discharge summary.

[(1)

An OTR or LOT has authority to discharge patients from occupational therapy services.]

[(2)

The OTR or LOT shall discharge a patient or client when the patient or client has achieved predetermined goals; has achieved maximum benefit from OT services; or when other circumstances warrant discontinuation of occupational therapy services.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 10, 2001.

TRD-200102636

John Maline

Executive Director

Texas Board of Occupational Therapy Examiners

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 305-6900


Chapter 373. SUPERVISION

40 TAC §§373.1 - 373.3

The Texas Board of Occupational Therapy Examiners proposes amendment to §373.1 and new §373.2 and §373.3 concerning Supervision. The amendment and new rules will differentiate between supervision for occupational therapy assistants, temporary licensees and non-licensed personnel.

John P. Maline, Executive Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rules.

Mr. Maline also has determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be clarification of type of supervision as used in the OT rules. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the rules as proposed.

Comments on the proposed rules may be submitted to Augusta Gelfand, OT Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas, 78701, (512) 305-6900, augusta.gelfand@mail.capnet.state.tx.us.

The amendment and new rules are proposed under the Occupational Therapy Practice Act, Title 3, Subchapter H, Chapter 456, Occupations Code, which provides the Texas Board of Occupational Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

Title 3, Subchapter H, Chapter 454 of the Occupations Code is affected by the proposal.

§373.1.Supervision of Non-Licensed Personnel .

(a)

Licensed occupational therapist are fully responsible for the planning and delivery of occupational therapy services. They may use non-licensed personnel to extend their services; however, the non-licensed personnel must be under the supervision of the licensed occupational therapist or licensed occupational therapy assistant.

(b)

Close Personnel Supervision implies direct, on-site contact whereby the supervising occupational therapy licensee is able to respond immediately to the needs of the patient. This type of supervision is required for non-licensed personnel providing support services to the occupational therapist and occupational therapy assistant.

(c)

When occupational therapy licensees delegate occupational therapy tasks to non-licensed personnel, the licensee is responsible for ensuring that this person is adequately trained in the tasks delegated.

(d)

The licensee proving the treatment must interact with the patient regarding the patient's condition, progress, and/or achievement of goals during each treatment session.

(e)

Delegation of tasks to non-licensed personnel includes but is not limited to:

(1)

routine department maintenance;

(2)

transportation of patients/clients;

(3)

preparation or set up of treatment equipment and work area;

(4)

assisting patients/clients with their personal needs during treatment;

(5)

assisting in the construction of adaptive/assistive equipment and splints. The licensee must be on-site and attending for any initial applications to the patient;

(6)

carrying out a predetermined segment or task in the patient's care for which the patient has demonstrated some previous performance ability in executing the task;

(f)

The non-licensed personnel may not:

(1)

perform occupational therapy evaluative procedures

(2)

initiate, plan, adjust, or modify occupational therapy procedures.

(3)

act on behalf of the occupational therapist in any matter relating to occupational therapy which requires decision making or professional judgements.

[(a)

Occupational Therapists, Registered or Licensed Occupational Therapists (OTRs or LOTs) are fully responsible for the planning and delivery of occupational therapy services.]

[(1)

The supervising OTR or LOT is responsible for providing the supervision necessary to protect the health and welfare of the consumer receiving OT services from a COTA, LOTA, temporary licensee or OT Aide or Orderly.]

[(2)

OTRs or LOTs must ensure that tasks appropriate for a COTA, LOTA or temporary licensee are not delegated to persons without current licenses.]

[(3)

The COTA, LOTA or temporary licensee is responsible for the execution of his or her professional duties.]

[(b)

Supervision of a COTA or an LOTA.]

[(1)

The OTR or LOT shall delegate responsibilities to the COTA or LOTA that are within the scope of his or her training.]

[(2)

A COTA or LOTA shall provide occupational therapy services only under the general supervision of a licensed OTR or LOT. (See Chapter 362 of this title (relating to Definitions)).]

[(A)

General supervision (See Chapter 362 of this title (relating to Definitions)) of COTAs or LOTAs must be documented on an "Occupational Therapy Supervision Log" prescribed by the board. COTAs and LOTAs employed part time or with more than one employer shall prorate the required documented supervision.]

[(i)

The "Occupational Therapy Supervision Log" must be kept by the COTA or LOTA and a copy of this form must be maintained by each employer.]

[(ii)

The "Occupational Therapy Supervision Log" must be submitted to TBOTE with the COTA's or LOTA's renewal application.]

[(B)

The supervising OTR or LOT need not be physically present or on the premises at all times.]

[(3)

Except where otherwise restricted by rule, the supervising OTR or LOT may only delegate tasks to a COTA or LOTA that the OTR or LOT and COTA or LOTA agree are within the competency level of that COTA or LOTA.]

[(A)

A COTA or LOTA may initiate and perform the screening process and collect information for the OTR's or LOT's review. The OTR or LOT is responsible for determining if intervention is needed and if a referral is required for evaluation and/or occupational therapy intervention.]

[(B)

An OTR or LOT is responsible for the patient's evaluation/assessment. The supervising OTR or LOT may delegate to a COTA or LOTA the collection of data or information for the evaluation.]

[(i)

The OTR or LOT is responsible for the accuracy of evaluative information collected by the COTA or LOTA.]

[(ii)

The OTR or LOT must have face-to-face interaction with the patient or client during the evaluation process.]

[(C)

Only an OTR or LOT may develop or modify an Occupational Therapy plan of care (refer to §362.1 of this title (relating to Definitions)).]

[(D)

The OTR or LOT is responsible for the content and validity of the discharge summary and must sign the discharge summary.]

[(4)

It is the responsibility of the OTR or LOT and the COTA or LOTA to ensure that all documentation prepared by the COTA or LOTA which becomes part of the patient's/client's permanent record is approved and co-signed by the supervising OTR or LOT. Occupational Therapy notes must be initialed by the OTR or LOT and signed at the bottom of each page.]

[(5)

These rules shall not preclude the COTA or LOTA from responding to emergency situations in the patient's condition, which require immediate action.]

[(c)

Supervision of an OT Aide or OT Orderly.]

[(1)

When an OTR, LOT, COTA and/or LOTA delegates OT tasks to an aide or orderly, the OTR, LOT, COTA and/or LOTA is responsible for the aide's actions during patient contact on the delegated tasks. The licensee is responsible for ensuring that the aide is adequately trained in the tasks delegated.]

[(2)

The OTR, LOT, COTA or LOTA must interact with the patient regarding the patient's condition, progress and/or achievement of goals during each treatment session.]

[(3)

An OTR, LOT, COTA and/or LOTA using OT Aide or OT Orderly personnel to assist with the provision of occupational therapy services must provide close personal supervision in order to protect the health and welfare of the consumer. (See Chapter 362 of this title (relating to Definitions)).]

[(4)

Delegation of tasks to OT Aides or OT Orderlies.]

[(A)

The primary function of an OT Aide or OT Orderly functioning in an occupational therapy setting is to perform designated routine tasks related to the operation of an occupational therapy service. An OTR, LOT, COTA and/or LOTA may delegate to an OT Aide or OT Orderly only specific tasks which are not evaluative or recommending in nature, and only after insuring that the OT Aide or OT Orderly has been properly trained for the performance of the tasks. Such tasks include, but are not limited to:]

[(i)

routine department maintenance;]

[(ii)

transportation of patients/clients;]

[(iii)

preparation or setting up of treatment equipment and work area;]

[(iv)

assisting patients/clients with their personal needs during treatment;]

[(v)

assisting in the construction of adaptive equipment and splints;]

[(vi)

clerical, secretarial, administrative activities;]

[(vii)

carrying out a predetermined segment or task in the patient's care.]

[(B)

The OTR, LOT, COTA and/or LOTA shall not delegate to an OT Aide or OT Orderly:]

[(i)

performance of occupational therapy evaluative procedures;]

[(ii)

initiation, planning, adjustment, modification, or performance of occupational therapy procedures requiring the skills or judgment of an OTR, LOT, COTA or LOTA;]

[(iii)

making occupational therapy entries directly in patients' or clients' official records;]

[(iv)

acting on behalf of the occupational therapist in any matter related to occupational therapy which requires decision making or professional judgment.]

[(d)

Supervision of an occupational therapist or an occupational therapy assistant with a temporary license.]

[(1)

A person issued a temporary occupational therapy license must practice occupational therapy under the continuing supervision of an OTR or LOT. (See Chapter 362 of this title (relating to Definitions)).]

[(2)

A minimum of 16 hours of supervision per month for full time OTAs must be documented on an "Occupational Therapy Supervision Log" prescribed by the board. OTAs employed part time or with more than one employer shall prorate the required documented supervision. If the OTA is employed less than 20 hours per week, a minimum of eight hours of supervision is required per month.]

[(A)

The "Occupational Therapy Supervision Log" must be kept by the OTA and a copy of this form must be maintained by each employer.]

[(B)

The "Occupational Therapy Supervision Log" must be submitted to TBOTE with the COTA's first renewal application after regular licensure.]

[(3)

The temporary licensee must certify to the board the name, license number, and address of his or her supervisor on a form provided by the board during the application process.]

[(4)

The temporary licensee must notify the board within 15 days of a change in the OTR or LOT supervisor.]

[(5)

The temporary licensee shall not supervise an occupational therapy student, a COTA or LOTA, an occupational therapy assistant or an OT Aide or OT Orderly.]

[(6)

All documentation completed by an individual holding a temporary license which becomes part of the patient's/client's permanent file must be approved and co-signed by the supervising OTR or LOT. Occupational Therapy notes must be initialed by the OTR or LOT and signed at the bottom of each page.]

[(e)

Supervision of Provisional Licensees.]

[(1)

OTRs and LOTs with provisional licenses are excluded from supervision requirements.]

[(2)

COTAs and LOTAs with provisional licenses will require general supervision by a licensed OTR or LOT.]

§373.2.Supervision of a Temporary Licensee.

(a)

Supervision of an occupational therapist with a temporary license includes:

(1)

frequent communication between the supervising occupational therapist and the temporary licensee by telephone, written report or conference, including the review of progress of patients/clients assigned, plus

(2)

encounters twice a month where the occupational therapist directly observes the temporary licensee providing services to one or more patients/clients with face-to-face, real time interaction.

(b)

Supervision of an occupational therapy assistant with a temporary license includes;

(1)

sixteen hours of supervision a month of which at least twelve hours are through telephone, written report or conference, including the renew of progress of patients/clients assigned; plus

(2)

four or more hours of supervision a month which are face-to-face, real time supervision with the temporary licensee providing services to one or more patients/clients.

(c)

Temporary licensees may not supervise anyone.

(d)

All documentation completed by an individual holding a temporary license which becomes part of the patient's/client's permanent file, must be approved and co-signed by the supervising occupational therapist.

(e)

A temporary licensee works under the supervision of a regular licensed occupational therapist, whole name and license number are on file on the board's "Supervision of a Temporary Licensee" form.

(f)

A temporary licensee does not become a regular licensee with those privileges until the regular license is in hand.

§373.3.Supervision of a Licensed Occupational Therapy Assistant.

(a)

Supervision per month of eight hours includes:

(1)

A minimum of six hours a month of frequent communication with the supervising occupational therapist(s) and the occupational therapy assistant by telephone, written report, email, conference etc., including review of progress of patient's/client's assigned.

(2)

A minimum of two hours of supervision a month of face-to-face, real time interaction observing the occupational therapy assistant providing services with patients/clients.

(b)

Part-time licensees may pro-rate these hours, but shall document no less than four hours of supervision per month, one hours of which includes face-to-face, real time interaction observing the occupational therapy assistant providing services with patients/clients.

(c)

Occupational Therapy Assistants with more than one employer must have a supervisor at each job.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 10, 2001.

TRD-200102638

John Maline

Executive Director

Texas Department of Occupational Therapy Examiners

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 305-6900


Chapter 374. DISCIPLINARY ACTIONS/DETRIMENTAL PRACTICE/COMPLAINT PROCESS/CODE OF ETHICS

40 TAC §§374.1 - 374.3

The Texas Board of Occupational Therapy Examiners proposes amendments to §§374.1 - 374.3 concerning Disciplinary Actions/Detrimental Practice/Complaint Process/Code of Ethics. The amendments will reorganize the chapter and correct the Practice Act references.

John P. Maline, Executive Director of the Executive Council of Physical Therapy and Occupational Therapy Examiners, has determined that for the first five-year period the rules are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rules.

Mr. Maline also has determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be clarification procedures and more current references in the Act. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the rules as proposed.

Comments on the proposed rules may be submitted to Augusta Gelfand, OT Coordinator, Texas Board of Occupational Therapy Examiners, 333 Guadalupe, Suite 2-510, Austin, Texas, 78701, (512) 305-6900, augusta.gelfand@mail.capnet.state.tx.us.

The amendments are proposed under the Occupational Therapy Practice Act, Title 3, Subchapter H, Chapter 456, Occupations Code, which provides the Texas Board of Occupational Therapy Examiners with the authority to adopt rules consistent with this Act to carry out its duties in administering this Act.

Title 3, Subchapter H, Chapter 454 of the Occupations Code is affected by the amended sections.

§374.1.Disciplinary Actions.

(a)

The board, in accordance with the Administrative Procedure Act, may deny, revoke, suspend, or refuse to renew or issue a license, or may reprimand or impose probationary conditions, if the licensee or applicant for licensure has been found in violation of the rules or the Act. The board will adhere to procedures for such action as stated in the Act, §454.301 and §454.304 [ §30 and §31 ].

[(b)

The Act, §30(b)(6), states "practiced occupational therapy in a manner detrimental to the public health and welfare"; which is defined but not limited to the following:]

[(1)

impersonating another person holding an occupational therapy license or allowing another person to use his or her license;]

[(2)

using occupational therapy techniques or modalities for purposes not consistent with the development of occupational therapy as a profession, as a science, or as a means for promoting the public health and welfare;]

[(3)

failing to report or otherwise concealing information related to violations of the Act, or rules and regulations pursuant to the Act, which could therefore result in harm to the public health and welfare or damage the reputation of the profession;]

[(4)

intentionally making or filing a false or misleading report, or failing to file a report when it is required by law or third person, or intentionally obstructing or attempting to obstruct another person from filing such a report;]

[(5)

intentionally harassing, abusing, or intimidating a patient either physically or verbally;]

[(6)

intentionally or knowingly offering to pay or agreeing to accept any remuneration directly or indirectly, overtly or covertly, in cash or in kind, to or from any person, firm, association of persons, partnership, or corporation for receiving or soliciting patients or patronage, regardless of source of reimbursement, unless said business arrangement or payments practice is acceptable under the Texas Health and Safety Code, §161.091-161.094, the Social Security Act, §1128B, 42 United States Code 1320a-7b, or the Social Security Act, §1877, 42 United States Code 1395nn or its regulations;]

[(7)

recommending or prescribing therapeutic devices or modalities sold by a third person for the purpose or with the result of receiving a fee or other consideration from the third person;]

[(8)

breaching the confidentiality of the patient/therapist relationship;]

[(9)

failing to obtain informed consent prior to engaging in scientific research involving patients, or otherwise violating ethical principles of research as defined by the TBOTE Code of Ethics, §374.3 of this title (relating to Code of Ethics), or other occupational therapy standards;]

[(10)

practicing occupational therapy after the expiration of a temporary, provisional, or regular license;]

[(11)

violation of §373.1 of this title (relating to Supervision);]

[(12)

advertising in a manner which is false, misleading, or deceptive;]

[(13)

failing to register an occupational therapy facility which is not exempt or failing to renew the registration of an occupational therapy facility which is not exempt; or ]

[(14)

practicing in an unregistered occupational therapy facility which is not exempt.]

(b)

[ (c) ] The board recognizes four levels of disciplinary action for its licensees.

(1)

Level I: Order and/or Letter of Reprimand or Other Appropriate Disciplinary Action (including but not limited to community service hours)[ --The first step in the disciplinary action process. ]

(2)

Level II: Probation--The licensee may continue to practice while on probation. The board orders the probationary status which may include but is not limited to restrictions on practice and continued monitoring by the board during the specified time period.

(3)

Level III: Suspension--A specified period of time that the licensee may not practice as an occupational therapist or occupational therapy assistant. Upon the successful completion of the suspension period, the license will be reinstated upon the licensee successfully meeting all requirements.

(4)

Level IV: Revocation--A determination [ specified period of time ] that the licensee may not practice as an occupational therapist or occupational therapy assistant. Upon passage of 180 days, from the date the revocation order becomes final, the former [ successful completion of the revocation period, the ] licensee may petition the board for re-issuance of a license [ reinstatement (forms provided by the board) ]. The former licensee may be required to re-take the Examination.

(c)

[ (d) ] Licensees and facilities which provide occupational therapy services are responsible for understanding and complying with Chapter 454 of the Occupational Code [ knowledge of Texas Civil Statutes, Article 8851 ] (the Occupational Therapy Practice Act), and the Texas Board of Occupational Therapy Examiners' rules.

(d)

[ (e) ] Final disciplinary actions taken by the board will be routinely published as to the names and offenses of the licensees or facilities.

(e)

[ (f) ] A licensee who is ordered by the board to perform certain act(s) will be monitored by the board to ensure that the required act(s) are completed per the order of the board.

Detrimental Practice [ Complaints ].

[ (a) ]

The Act, §454.301(a)(6) states "practiced occupational therapy in a manner detrimental to the public health and welfare"; which is defined but not limited to the following: [ §5C, authorizes the board to investigate complaints. ]

(1)

impersonating another person holding an occupational therapy license or allowing another person to use his or her license;

(2)

using occupational therapy techniques or modalities for purposes not consistent with the development of occupational therapy as a profession, as a science, or as a means for promoting the public health and welfare;

(3)

failing to report or otherwise concealing information related to violations of the Act, or rules and regulations pursuant to the Act, which could therefore result in harm to the public health and welfare or damage the reputation of the profession;

(4)

intentionally making or filing a false or misleading report, or failing to file a report when it is required by law or third person, or intentionally obstructing or attempting to obstruct another person from filing such a report;

(5)

intentionally harassing, abusing, or intimidating a patient either physically or verbally;

(6)

intentionally or knowingly offering to pay or agreeing to accept any remuneration directly or indirectly, overtly or covertly, in cash or in kind, to or from any person, firm, association of persons, partnership, or corporation for receiving or soliciting patients or patronage, regardless of source of reimbursement, unless said business arrangement or payments practice is acceptable under the Texas Health and Safety Code, §§161.091-161.094, the Social Security Act, §1128B, 42 United States Code 1320a-7b, or the Social Security Act, §1877, 42 United States Code 1395nn or its regulations;

(7)

recommending or prescribing therapeutic devices or modalities sold by a third person for the purpose or with the result of receiving a fee or other consideration from the third person;

(8)

breaching the confidentiality of the patient/therapist relationship;

(9)

failing to obtain informed consent prior to engaging in scientific research involving patients, or otherwise violating ethical principles of research as defined by the TBOTE Code of Ethics, §374.4 of this title (relating to Code of Ethics), or other occupational therapy standards;

(10)

practicing occupational therapy after the expiration of a temporary, provisional, or regular license;

(11)

violation of Chapter 373 of this title (relating to Supervision);

(12)

advertising in a manner which is false, misleading, or deceptive;

(13)

failing to register an occupational therapy facility which is not exempt or failing to renew the registration of an occupational therapy facility which is not exempt; or

(14)

practicing in an unregistered occupational therapy facility which is not exempt.

[(b)

Filing and receipt of complaints.]

[(1)

Complaints may be received in writing. Complainants shall be invited to explain their allegations. The staff will provide reasonable assistance to a person who wishes to file a complaint. Anonymous complaints will be accepted, but it is understood that the lack of a witness or the ability to secure additional information from the anonymous complainant may result in the board's inability to secure sufficient evidence to pursue action against the alleged violator.]

[(2)

When a complaint is received, the board shall notify the parties to the complaint of the status of the complaint, unless the notice would jeopardize an undercover investigation. The board shall notify the parties to the complaint at least as frequently as quarterly until there is final disposition of the complaint, in accordance with the Act, §5B.]

[(3)

Not later than the tenth calendar day after a complaint is received, the staff shall place a timeline for completion of the investigation in the file and notify all parties to the complaint. Any change in the timeline must be noted in the file and all parties notified of the change not later than seven calendar days after the change was made. For purposes of this rule, completion of an investigation in a disciplinary matter occurs when:]

[(A)

staff determines there is insufficient evidence to demonstrate a violation of the Act, board rules, or a board order; or ]

[(B)

staff determines that there is sufficient evidence to demonstrate a violation of the Act, board rules, or a board order and drafts proposed formal charges.]

[(4)

The staff shall provide summary data of complaints extending beyond the complaint timeline to the coordinator and the executive director who will then notify the board at a regularly scheduled meeting.]

[(5)

The board shall keep an information file on each complaint submitted to the board. The file will be kept current and include a record of all persons contacted in relation to the complaint, notes about the findings throughout the complaint process, and other relevant information.]

[(6)

The Investigation Committee may determine when and if a private investigator is needed for processing of a complaint.]

[(7)

Complaints shall be assigned a priority status in the following categories:]

[(A)

Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving actual deception, fraud, or injury to clients or the public or a high probability of immediate deception, fraud, or injury to clients or the public.]

[(B)

Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving a high probability of potential deception, fraud, or injury to clients or the public.]

[(C)

Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving a potential for deception, fraud, or injury to clients or the public.]

[(D)

All other complaints.]

[(c)

The Executive Director and the Investigation Committee will take appropriate action to investigate the complaint or take other appropriate action.]

[(1)

The Investigation Committee will hold meetings, at least quarterly, to review complaints, to determine if there is sufficient evidence to substantiate the allegations, to hold informal conferences, to identify appropriate discipline for violations, and to make recommendations for disciplinary action to the board.]

[(2)

The Investigation Committee reviews the evidence that has been submitted and gathered by the investigator and, typically, makes one of the following determinations:]

[(A)

The scope of the complaint is beyond the authority of the board and possibly may be handled by another entity. The committee may refer the complainant to an appropriate entity.]

[(B)

There is insufficient evidence to substantiate that a violation of the Act or rules has occurred, thus closing the investigation.]

[(C)

Evidence indicates a possible violation did occur and further investigation is needed.]

[(D)

Evidence indicates a violation did occur and disciplinary action is not warranted.]

[(E)

Evidence indicates a violation did occur and disciplinary action is warranted.]

[(d)

Preliminary notice.]

[(1)

Prior to commencing disciplinary proceedings, the staff shall serve the respondent with written notice in accordance with the Texas Government Code, §2001.54(c).]

[(2)

Such notice shall contain a statement of the facts or conduct alleged to warrant an adverse action. The notice shall invite the respondent to show compliance with all requirements of the law for retention of the license.]

[(3)

The respondent shall have not less than ten calendar days to respond in writing.]

[(e)

Agreed orders.]

[(1)

An agreed order is a legal document and the formal means by which a respondent accepts the disciplinary action imposed by the board. To be a valid document it must be approved by the board and signed by both the respondent and the chair of the board.]

[(2)

An agreed order may be negotiated with any person under the jurisdiction of the board, the terms of which shall be approved by the Investigation Committee.]

[(3)

The agreed order will be sent to the respondent by certified mail. To accept the agreed order, the respondent must sign it in the presence of a notary and return it to the board within ten calendar days after receipt. Inaction by the respondent constitutes rejection. If the respondent rejects the proposed settlement, the matter shall be referred to the Investigation Committee for appropriate action.]

[(4)

The agreed order with the notarized signature of the respondent will be presented to the board. The proposed agreed order shall have no effect until such time as the board may, at a scheduled meeting, take action approving the agreed order. The agreed order will include a provision requiring the respondent reimburse the board for all investigative expenses.]

[(5)

The respondent shall be notified of the date, time, and place of the board meeting at which the proposed agreed order will be considered. Attendance by the respondent is voluntary.]

[(6)

Consideration by the board will include the following:]

[(A)

Any board member who participated in the investigation of the complaint or formulation of the proposed agreed order may not vote on the agreed order.]

[(B)

The respondent's identity will not be made available to the board until after the board has reviewed and made a decision on the agreed order.]

[(C)

Upon an affirmative majority vote, the board shall authorize the agreed order, and the chair of the board will sign it. The board-approved agreed order will be provided to the respondent. A copy of the order will then be placed in the licensee's permanent file.]

[(D)

If the board does not approve the agreed order, the matter will be referred to the Investigation Committee or the executive director for other appropriate action. The respondent and the complainant shall be so informed.]

[(f)

Dismissal of complaints.]

[(1)

Complaints may be dismissed for the following reasons:]

[(A)

No evidence available.]

[(B)

Insufficient evidence.]

[(C)

Other reasons which the Investigation Committee believe are justification for dismissal.]

[(2)

Upon the decision of the Investigation Committee to dismiss a complaint, the person who filed the complaint is provided a letter explaining why the complaint has been dismissed.]

[(3)

On a quarterly basis, the board is provided with a list of the complaints that were dismissed and the reasons for the dismissals.]

[(4)

At least annually the board will advise the Executive Council of complaints which have been disposed.]

[(g)

Informal conference.]

[(1)

At any time after the filing of a complaint, an informal conference may be held prior to the contested case hearing for one or more of the following purposes:]

[(A)

Clarifying the issues;]

[(B)

Considering proposed admissions or stipulations of fact;]

[(C)

Reviewing the procedure to govern the contested case hearing;]

[(D)

Exchanging witness lists and agreeing to limit the number of witnesses; and/or ]

[(E)

Doing any act that may simplify the proceedings, and dispose of matters in controversy, including settlement of issues in dispute and preparation of an agreed order for presentation to the board as provided herein.]

[(2)

A respondent may request an informal settlement conference; however, the decision to hold a conference shall be made by the executive director or the Investigation Committee.]

[(3)

Participation in an informal conference shall not be mandatory for the licensee or applicant, nor is it a prerequisite to a formal hearing.]

[(4)

The executive director shall decide upon the time, date, and place of the settlement conference and provide written notice to the respondent of the same. Notice shall be provided no less than ten calendar days prior to the date of the conference by certified mail, return receipt requested to the last known address of the respondent. The ten days shall begin on the date of certified mailing. The respondent may waive the ten-day notice requirement.]

[(A)

The notice shall inform the respondent of the following:]

[(i)

the nature of the alleged violation;]

[(ii)

that the respondent may be represented by legal counsel;]

[(iii)

that the respondent may offer the testimony of witnesses and present other evidence as may be appropriate;]

[(iv)

that a board member may be present;]

[(v)

that a representative of the Office of the Attorney General will be present;]

[(vi)

that the respondent's attendance and participation is voluntary;]

[(vii)

that the complainant and any client involved in the alleged violations may be present; and ]

[(viii)

that the settlement conference shall be canceled if the respondent notifies the executive director that he or she will not attend.]

[(B)

A copy of the board's rules concerning informal disposition shall be enclosed with the notice of the settlement conference.]

[(5)

The notice of the settlement conference shall be sent by certified mail, return receipt requested, to the complainant's last known address. The complainant shall be informed that he or she may appear and testify or may submit a written statement for consideration at the settlement conference. The complainant shall be notified if the conference is canceled.]

[(6)

Participants in the informal conference may include a board member, agency staff, the complainant, the respondent, attorneys representing any of the participants, and any other persons determined by the Investigation Committee or the executive director to be necessary for proper conduct of the conference. All other persons may be excluded.]

[(7)

The settlement conference shall be informal and shall not follow the procedures established in this chapter for contested cases and formal hearings.]

[(8)

The respondent, the respondent's attorney, a board member, and board staff may question witnesses, make relevant statements, present statements of persons not in attendance, and present such other evidence as may be appropriate.]

[(9)

An attorney from the Office of the Attorney General shall attend each settlement conference. The board member or executive director may call upon the attorney at any time for assistance in the settlement conference.]

[(10)

The respondent shall be afforded the opportunity to make statements on his or her own behalf.]

[(11)

Access to the board's investigative file may be prohibited or limited in accordance with the Administrative Procedures Act (APA), Chapter 2001, Texas Government Code, and the Open Records Act, Chapter 552, Texas Government Code.]

[(12)

No formal recording of the settlement conference shall be made.]

[(13)

At the conclusion of the settlement conference, the board member or the executive director may make recommendations for informal disposition of the complaint or contested case. The recommendations may include any disciplinary action authorized by the Occupational Therapy Practice Act. The board member or the executive director may also conclude that the board lacks jurisdiction, that a violation of the Act or this chapter has not been established, order that the investigation be closed, or refer the matter for further investigation.]

[(h)

The board follows the Administrative Procedure Act (APA), Texas Government Code, Chapter 2001, for resolution of complaints as a contested case. A copy of the APA procedures may be obtained from the board.]

[(i)

Should the recommendation for an informal disposition not be accepted by the respondent, the complaint shall be referred back to the Investigation Committee for appropriate action. The committee shall determine if the case should be referred to the State Office of Administrative Hearings (SOAH) or dismissed for insufficient evidence or other reasons justifying a dismissal.]

[(j)

If the Investigation Committee determines that a violation has occurred and the respondent is not under the jurisdiction of the board, the committee has the option of referring the case to the appropriate authority: district attorney, county attorney, etc.]

Complaint Process [ Code of Ethics ].

(a)

The Act, Subchapters G and H, authorizes the board to investigate complaints.

(b)

Filing and receipt of complaints.

(1)

Complaints may be received in writing. Complainants shall be invited to explain their allegations. The staff will provide reasonable assistance to a person who wishes to file a complaint. Anonymous complaints will be accepted, but it is understood that the lack of a witness or the ability to secure additional information from the anonymous complainant may result in the board's inability to secure sufficient evidence to pursue action against the alleged violator.

(2)

When a complaint is received, the board shall notify the parties to the complaint of the status of the complaint, unless the notice would jeopardize an undercover investigation. The board shall notify the parties to the complaint at least as frequently as quarterly until there is final disposition of the complaint, in accordance with the Act, §454.152.

(3)

Not later than the tenth calendar day after a complaint is received, the staff shall place a timeline for completion of the investigation in the file and notify all parties to the complaint. Any change in the timeline must be noted in the file and all parties notified of the change not later than seven calendar days after the change was made. For purposes of this rule, completion of an investigation in a disciplinary matter occurs when:

(A)

staff determines there is insufficient evidence to demonstrate a violation of the Act, board rules, or a board order; or

(B)

staff determines that there is sufficient evidence to demonstrate a violation of the Act, board rules, or a board order and drafts proposed formal charges.

(4)

The staff shall provide summary data of complaints extending beyond the complaint timeline to the coordinator and the executive director who will then notify the board at a regularly scheduled meeting.

(5)

The board shall keep an information file on each complaint submitted to the board. The file will be kept current and include a record of all persons contacted in relation to the complaint, notes about the findings throughout the complaint process, and other relevant information.

(6)

The Investigation Committee may determine when and if a private investigator is needed for processing of a complaint.

(7)

Complaints shall be assigned a priority status in the following categories:

(A)

Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving actual deception, fraud, or injury to clients or the public or a high probability of immediate deception, fraud, or injury to clients or the public.

(B)

Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving a high probability of potential deception, fraud, or injury to clients or the public.

(C)

Those indicating that credible evidence exists showing a violation of the Occupational Therapy Practice Act involving a potential for deception, fraud, or injury to clients or the public.

(D)

All other complaints.

(c)

The Executive Director and the Investigation Committee will take appropriate action to investigate the complaint or take other appropriate action.

(1)

The Investigation Committee will hold meetings, at least quarterly, to review complaints, to determine if there is sufficient evidence to substantiate the allegations, to hold informal conferences, to identify appropriate discipline for violations, and to make recommendations for disciplinary action to the board.

(2)

The Investigation Committee reviews the evidence that has been submitted and gathered by the investigator and, typically makes one of the following determinations:

(A)

The scope of the complaint is beyond the authority of the board and possibly may be handled by another entity. The committee may refer the complainant to an appropriate entity.

(B)

There is insufficient evidence to substantiate that a violation of the Act or rules has occurred, thus closing the investigation.

(C)

Evidence indicates a possible violation did occur and further investigation is needed.

(D)

Evidence indicates a violation did occur and disciplinary action is not warranted.

(E)

Evidence indicates a violation did occur and disciplinary action is warranted.

(d)

Preliminary notice.

(1)

Prior to commencing disciplinary proceedings, the staff shall serve the respondent with written notice in accordance with the Texas Government Code, §2001.54(c).

(2)

Such notice shall contain a statement of the facts or conduct alleged to warrant an adverse action. The notice shall invite the respondent to show compliance with all requirements of the law for retention of the license.

(3)

The respondent shall have not less than ten calendar days to respond in writing.

(e)

Agreed orders.

(1)

An agreed order is a legal document and the formal means by which a respondent accepts the disciplinary action imposed by the board. To be a valid document it must be approved by the board and signed by both the respondent and the chair of the board.

(2)

An agreed order may be negotiated with any person under the jurisdiction of the board, the terms of which shall be approved by the Investigation Committee.

(3)

The agreed order will be sent to the respondent by certified mail. To accept the agreed order, the respondent must sign it in the presence of a notary and return it to the board within ten calendar days after receipt. Inaction by the respondent constitutes rejection. If the respondent rejects the proposed settlement, the matter shall be referred to the Investigation Committee for appropriate action.

(4)

The agreed order with the notarized signature of the respondent will be presented to the board. The proposed agreed order shall have no effect until such time as the board may, at a scheduled meeting, take action approving the agreed order. The agreed order will include a provision requiring the respondent reimburse the board for all investigative expenses.

(5)

The respondent shall be notified of the date, time, and place of the board meeting at which the proposed agreed order will be considered. Attendance by the respondent is voluntary.

(6)

Consideration by the board will include the following:

(A)

Any board member who participated in the investigation of the complaint or formulation of the proposed agreed order may not vote on the agreed order.

(B)

The respondent's identity will not be made available to the board until after the board has reviewed and made a decision on the agreed order.

(C)

Upon an affirmative majority vote, the board shall authorize the agreed order, and the chair of the board will sign it. The board-approved agreed order will be provided to the respondent. A copy of the order will then be placed in the licensee's permanent file.

(D)

If the board does not approve the agreed order, the matter will be referred to the Investigation Committee or the Executive Director for other appropriate action. The respondent and the complainant shall be so informed.

(f)

Dismissal of complaints.

(1)

Complaints may be dismissed for the following reasons:

(A)

No evidence available.

(B)

Insufficient evidence.

(C)

Other reasons which the Investigation Committee believes are justification for dismissal.

(2)

Upon the decision of the Investigation Committee to dismiss a complaint, the person who filed the complaint is provided a letter explaining why the complaint has been dismissed.

(3)

On a quarterly basis, the board is provided with a list of the complaints that were dismissed and the reasons for the dismissals.

(4)

At least annually the board will advise the Executive Council of complaints which have been disposed.

(g)

Informal conference.

(1)

At any time after the filing of a complaint, an informal conference may be held prior to the contested case hearing for one or more of the following purposes:

(A)

Clarifying the issues;

(B)

Considering proposed admissions or stipulations of fact;

(C)

Reviewing the procedure to govern the contested case hearing;

(D)

Exchanging witness lists and agreeing to limit the number of witnesses; and/or

(E)

Doing any act that may simplify the proceedings, and dispose of matters in controversy, including settlement of issues in dispute and preparation of an agreed order for presentation to the board as provided herein.

(2)

A respondent may request an informal settlement conference; however, the decision to hold a conference shall be made by the Executive Director or the Investigation Committee.

(3)

Participation in an informal conference shall not be mandatory for the licensee or applicant, nor is it a prerequisite to a formal hearing.

(4)

The Executive Director shall decide upon the time, date, and place of the settlement conference and provide written notice to the respondent of the same. Notice shall be provided no less than ten calendar days prior to the date of the conference by certified mail, return receipt requested to the last known address of the respondent. The ten days shall begin on the date of certified mailing. The respondent may waive the ten-day notice requirement.

(A)

The notice shall inform the respondent of the following:

(i)

the nature of the alleged violation;

(ii)

that the respondent may be represented by legal counsel;

(iii)

that the respondent may offer the testimony of witnesses and present other evidence as may be appropriate;

(iv)

that a board member may be present;

(v)

that a representative of the Office of the Attorney General will be present;

(vi)

that the respondent's attendance and participation is voluntary;

(vii)

that the complainant and any client involved in the alleged violations may be present; and

(viii)

that the settlement conference shall be canceled if the respondent notifies the Executive Director that he or she will not attend.

(B)

A copy of the board's rules concerning informal disposition shall be enclosed with the notice of the settlement conference.

(5)

The notice of the settlement conference shall be sent by certified mail, return receipt requested, to the complainant's last known address. The complainant shall be informed that he or she may appear and testify or may submit a written statement for consideration at the settlement conference. The complainant shall be notified if the conference is canceled.

(6)

Participants in the informal conference may include a board member, agency staff, the complainant, the respondent, attorneys representing any of the participants, and any other persons determined by the Investigation Committee or the Executive Director to be necessary for proper conduct of the conference. All other persons may be excluded.

(7)

The settlement conference shall be informal and shall not follow the procedures established in this chapter for contested cases and formal hearings.

(8)

The respondent, the respondent's attorney, a board member, and board staff may question witnesses, make relevant statements, present statements of persons not in attendance, and present such other evidence as may be appropriate.

(9)

An attorney from the Office of the Attorney General shall attend each settlement conference. The board member or Executive Director may call upon the attorney at any time for assistance in the settlement conference.

(10)

The respondent shall be afforded the opportunity to make statements on his or her own behalf.

(11)

Access to the board's investigative file may be prohibited or limited in accordance with the Administrative Procedures Act (APA), Chapter 2001, Texas Government Code, and the Open Records Act, Chapter 552, Texas Government Code.

(12)

No formal recording of the settlement conference shall be made.

(13)

At the conclusion of the settlement conference, the board member or the Executive Director may make recommendations for informal disposition of the complaint or contested case. The recommendations may include any disciplinary action authorized by the Occupational Therapy Practice Act. The board member or the Executive Director may also conclude that the board lacks jurisdiction, that a violation of the Act or this chapter has not been established, order that the investigation be closed, or refer the matter for further investigation.

(h)

The board follows the Administrative Procedure Act (APA), Texas Government Code, Chapter 2001, for resolution of complaints as a contested case. A copy of the APA procedures may be obtained from the board.

(i)

Should the recommendation for an informal disposition not be accepted by the respondent, the complaint shall be referred back to the Investigation Committee for appropriate action. The committee shall determine if the case should be referred to the State Office of Administrative Hearings (SOAH) or dismissed for insufficient evidence or other reasons justifying a dismissal.

(j)

If the Investigation Committee determines that a violation has occurred and the respondent is not under the jurisdiction of the board, the committee has the option of referring the case to the appropriate authority: district attorney, county attorney, etc.

[(a)

The Texas Board of Occupational Therapy Examiners Code of Ethics is a public statement of the values and principles used in promoting and maintaining high standards of behavior in occupational therapy within the state of Texas. The Code of Ethics is a set of principles that applies to occupational therapy personnel. ("Personnel" in this section are defined as those individuals licensed by this board or applicants for licensure with this board.)]

[(b)

Any action that is in violation of the spirit and purpose of this Code shall be considered unethical. To ensure compliance with the Code, enforcement procedures are established by the board and enforced by the Investigation Committee and investigative staff. Submission of an application to, or acceptance of a license from, this board commits these individuals to adherence to the Code of Ethics and its enforcement procedures.]

[(c)

Principle 1. Occupational therapy personnel shall demonstrate a concern for the well being of the recipients of their services (beneficence).]

[(1)

Occupational therapy personnel shall provide services in an equitable manner for all individuals.]

[(2)

Occupational therapy personnel shall maintain relationships that do not exploit the recipient of services sexually, physically, emotionally, financially, socially or in any other manner. Occupational therapy personnel shall avoid those relationships or activities that interfere with professional judgment and objectivity.]

[(3)

Occupational therapy personnel shall take all reasonable precautions to avoid harm to the recipient of services or to his or her property.]

[(4)

Occupational therapy personnel shall strive to ensure that fees are fair, reasonable, and commensurate with the service performed.]

[(d)

Principle 2. Occupational therapy personnel shall respect the rights of the recipients of their services (e.g., autonomy, privacy, confidentiality).]

[(1)

Occupational therapy personnel shall collaborate with service recipients or their surrogate(s) in determining goals and priorities throughout the intervention process.]

[(2)

Occupational therapy personnel shall inform the service recipients of the nature, risks, and potential outcomes of any occupational therapy interventions.]

[(3)

Occupational therapy personnel shall obtain informed consent from subjects involved in research activities indicating they have been advised of the potential risks and outcomes.]

[(4)

Occupational therapy personnel shall respect the individual's right to refuse professional services or involvement in research or educational activities.]

[(5)

Occupational therapy personnel shall protect the confidential nature of information gained from educational, practice, research, and investigational activities.]

[(e)

Principal 3. Occupational therapy personnel shall achieve high standards of competence (duties).]

[(1)

Occupational therapy personnel shall hold the appropriate national and state credentials for providing services.]

[(2)

Occupational therapy personnel shall take responsibility for maintaining competence by participating in professional development and educational activities.]

[(3)

Occupational therapy personnel shall perform their duties on the basis of accurate and current information.]

[(4)

Occupational therapy personnel shall protect service recipients by ensuring that duties assumed by or assigned to other occupational therapy personnel or non-licensed individuals are commensurate with their qualifications and experience.]

[(5)

Occupational therapy personnel shall provide appropriate supervision to individuals for whom the practitioners have supervisory responsibility.]

[(6)

Occupational therapy personnel shall refer recipients to other service providers or consult with other service providers when additional knowledge and expertise are required.]

[(f)

Principle 4. Occupational therapy personnel shall comply with the rules and laws of the state of Texas guiding the profession of occupational therapy (justice).]

[(1)

Occupational therapy personnel shall understand and abide by applicable board rules.]

[(2)

Occupational therapy personnel shall inform employers, employees, and colleagues about those laws and board rules that apply to the profession of occupational therapy.]

[(3)

Occupational therapy personnel shall require those they supervise in occupational therapy related activities to adhere to the Code of Ethics.]

[(4)

Occupational therapy personnel shall accurately record and report all information related to professional activities.]

[(g)

Principle 5. Occupational therapy personnel shall provide accurate information about occupational therapy services (veracity).]

[(1)

Occupational therapy personnel shall accurately represent their qualification, education, experience, training, and competence.]

[(2)

Occupational therapy personnel shall disclose any affiliations that may pose a conflict of interest.]

[(3)

Occupational therapy personnel shall refrain from using or participating in the use of any form of communication that contains false, fraudulent, deceptive, or unfair statements or claims.]

[(h)

Principle 6. Occupational therapy personnel shall treat colleagues and other professionals with fairness, discretion, and integrity (fidelity, veracity).]

[ (1)

Occupational therapy personnel shall safeguard confidential information about colleagues and staff.]

[(2)

Occupational therapy personnel shall accurately represent the qualifications, views, contributions, and finding of colleagues.]

[(3)

Occupational therapy personnel shall report any breaches of the Code of Ethics to the board.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 10, 2001.

TRD-200102639

John Maline

Executive Director

Texas Board of Occupational Therapy Examiners

Earliest possible date of adoption: June 24, 2001

For further information, please call: (512) 305-6900